BANCABANCA CARIGECARIGE Cassa di Risparmio di Genova e Imperia
September 2005
-1- BANCA CARIGE GROUP Agenda
Carige’s project: history and results
The 2005-2007 Business Plan
The adoption of IAS and 1H 2005 results
Carige share performance
-2- BANCA CARIGE GROUP Carige’sCarige’s project:project: historyhistory andand resultsresults
The 2005-2007 Business Plan
The adoption of IAS and 1H 2005 results
Carige share performance
-3- BANCA CARIGE GROUP Historical evolution
Independence through growth
1483 - 1989 1990 - 1998 1999 - 2003
A long history Capital base Expansion and as one of the strengthening and diversification: oldest banks in opening to new from a regional to the world shareholders: a multilocal from savings bank network and from to stock company a bank to a financial conglomerate
-4- BANCA CARIGE GROUP Timeline of events
Establishment of Change of name Creation of a IPO: first savings Capital increase Acquisition of 124 Establishment of Cassa di to Cassa di Multifunctional bank to be floated reserved to branches from Carige AM SGR Risparmio di Risparmio di group on the Italian institutional BdS, Intesa and SpA - acquisition Genova Genova e Imperia Stock Exchange investors Capitalia of Banca C. Ponti
14831483 18461846 19291929 19671967 19911991 19921992 19941994 19951995 19971997 19981998 19991999 2000–20022000–2002 22003003 20020044
Foundation of Merger of Monte di Banca Carige Commitment of Acquisition of the Italian International Sharecapital Monte di Pietà di Pietà into Cassa di becomes the the Foundation to insurance activities of partnership increase; Genova Risparmio di banking subsidiary privatise Banca Baloise Group; the non agreements acquisition of Genova of Foundation Carige. life company Carige (CNCE, WestLB Cassa di Ass.ni and the life and El Monte); Risparmio di Merger of financial company Carige Vita acquisition of BML Carrara subsidiaries Nuova (formerly Levante and Cassa di Ass.ni and Basilese Vita Risparmio di Nuova) Savona
-5- BANCA CARIGE GROUP M&A activity
Year Capital cash flows Amounts Year Investments Amounts Euro mn Euro mn
1994-95 IPO 105 1993-95-99 Cassa di Risparmio di Savona 225
1996-97 Bond conversion into new shares 61 1991-2004 Insurance companies 290
1997 Capital increase underwritten 46 1999 - 2002 Banca del Monte di Lucca 63 by La Basilese
2000 21 branches from Banco di Sicilia 60 Capital increase underwritten 1998 by institutional investors 116
2001 61 branches from Intesa 277 Capital increase underwritten 1999 By CNCEP, CDC, WestLB 236 2002 42 branches from Capitalia 127
2001 Issue of a subordinated loan 400 2003 Cassa di Risparmio di Carrara 176
Capital increase and issue of 2003 subordinated convertible bonds 306 2004 Banca Cesare Ponti 38
Total 1,270 Total 1,256
-6- BANCA CARIGE GROUP The structure of the Group
Fondazione CR Genova e CNCE WestLB Others Imperia 43.37% 11.02% 6.41% 39.20%
Banca Carige S.p.A. - Cassa di Risparmio di Genova e Imperia
Banking Trustee Insurance Financial Real Estate
76.93% 95.90% 100.00% 99.50% 100.00% 20.00% Centro Fiduciario 0.50% Carige AM SGR S.p.A. Galeazzo S.r.l. C.F. S.p.A. 54.00% 0.01% 98.24% 99.99% 60.00% 90.00% Columbus Carige Immobiliare S.p.A. CR Carrara 1,25% as own shares 60.00% 51. 09% 90.00% Cesare Ponti PRIAMAR Immobiliare Ettore Finance Srl Vernazza S.p.A. 47.50% 10% as own shares
100.00% Immobiliare Carisa S.r.l.
-7- BANCA CARIGE GROUP Expansion of Carige in Italy in the period 1989-2005
1989 2005
4 7 1 1 40/62 12/30 3 35/24 2 19/19 245/15 131 53/27 245 (~50%) 2/11 branches 1/5 in Liguria 13 131 (96%) branches 33/37 Loans and 2 9/34 in Liguria and deposits Market 94 (69%) in share in Liguria 9 Genoa province ~33% 3
7/24 27
Banking branches 38/53 Insurance outlets
Insurance outlets only
Branches/ Branches Employees Regions Provinces outlets Employees Regions Provinces
Bank 137 2,962 4 8 Banks (*) 495 4,777 12/20 55/103 Insurances 407 375 20/20 98/103 Group 902 5,152 20/20 99/103
(*) Nice (France) included.
-8- BANCA CARIGE GROUP Carige Group results (1989-2004)
Total intermediation Capital and reserves
41,820 1,500 CAGR*: CAGR*: 11.3% 13.4%
8,380 226
1989 2004 1989 2004
Net profit Employees
CAGR*: CAGR*: 100,9 3.3% 4,787 11.2% 2,962
20,5
1989 2004 1989 2004
Millions of Euro. Banca Cesare Ponti included. *CAGR = compound annual growth rate -9- BANCA CARIGE GROUP Carige Group: ranking in Italian Market
Total assets 17th
Total Intermediation from customers 18th
Shareholders' equity 13th
Employees 16th
Branches 14th
Net Profit 16th
FitchFitch AA Moody’sMoody’s AA22 Standard&Poor’sStandard&Poor’s A-A-
-10- BANCA CARIGE GROUP Carige’s project: history and results
ThThee 2005-20072005-2007 BusinessBusiness PlanPlan
The adoption of IAS and 1H 2005 results
Carige share performance
-11- BANCA CARIGE GROUP Future evolution
Independence through growth
1990 - 1998 1999 - 2003 2004 - 2007
Capital base Expansion and strengthening and diversification: Rationalisation and opening to new from a regional to profitability shareholders: a local network enhancement from savings bank and from a bank to to stock company a financial conglomerate
-12- BANCA CARIGE GROUP Our mission
The strategic objective of Carige Group is to become a national financial conglomerate equipped to provide banking, financial, insurance and pension solutions establishing strong ties with local markets, able to differentiate in the quality of service through an integrated multi-channel distribution system and the quality of resources and structures.
Quality of resources Conglomerate National Quality of service and structures
• Complete offer of • Stronghold in • Focus on retail • Specialisation of banking, financial and Liguria distribution and insurance products • Widespread and production structures and services • Out of Liguria it intensive use of distinguishes itself technology • Unitary management of • Aggregation point for for the attention to the Group’s key- smaller banks the relationship expertises with local communities • Professional development of human resources
-13- BANCA CARIGE GROUP The core priorities of the 2005-2007 Strategic Plan
• Profitability enhancement of each business area Strengthening of (lending, wealth management, payment system, operating efficiency insurance) and profitability • Profitability enhancement of banking and enhancement insurance subsidiaries • Cost Management
• Increase of volumes per employee: Growth through ¾ cross-selling, up-selling and retention in Liguria productivity improvement ¾ rising of market share outside Liguria, also in synergy with insurance agents
• Re-engineering of business processes Risk management • Control of the economic impact of risks
-14- BANCA CARIGE GROUP Expected results
CAGRCAGR 20042004 20072007 07-0407-04
Total Intermediation (€ bn) 41.8 48.2 4.8% Net profit (€ mn) 100.9 184.5 22.3% Capital and reserves (€ mn) 1,500 1,730 4.9% CARIGE ROE 6.7% 10.7% CARIGE Cost Income Ratio 65.1% 57.6% GROUPGROUP Tier 1 ratio 7.4% 8.8% Total capital ratio 9.6% 9.9%
Capital in excess (€ mn) 204 279 11.0% Total Intermediation (€ bn) 34.3 40.2 5.3% Net profit (€ mn) 107.5 188.3 20.5% Dividends 83,6 86,5 1.1% Capital and reserves (€ mn) 1,622 1,883 5.1% CARIGECARIGE BANKBANK ROE 6.6% 10.0% Cost Income Ratio 61.6% 54.0% P/BV 2.07 1.99 P/E 31.29 19.9 EPS (€) 0.097 0.163 18.9%
Data PRE-IAS -15- BANCA CARIGE GROUP The Group’s operating income
1200 CAGR*: 1,108.6 7.4% 1000 OPE 894.2 RAT 800 CAGR*: 576.2 5,6 % ING Net operating income 600 489.1 INC 400 CAGR*: 450 OME 532,4 CAGR*07-04: 9,5 % 200 405.1 400 14.6% 350 0 300 2004 2007 250 Net interest income non interest income 200 421 150 CAGR*: 280 800 3.8% 100 687.4 50 700 - C 600 614.4 CAGR*: 312.3 2004 ... 2007 O 500 2.3% S 400 291.9 Cost income CAGR*: 300 2.7% ratio 65.1% ... 57.6% T 193.6 200 178.7 S CAGR*: 100 8.1% 143.8 181.5 - 2004 2007 Depreciations and *CAGR = compound annual growth rate amortisation of assets administrative costs personnel
-16- BANCA CARIGE GROUP New Openings 2005-2009
In addition to the Strategic Plan, the Group has drawn up a plan to increase the number of its branches between 2005 and 2009. The new branches will be localised in the regions next to Liguria (Lombardia, Piemonte, Emilia Romagna, Toscana), in order to enforce the brand where it already exists. The Plan foresees 82 openings (59 with Carige brands and 23 with brands of the other banks of the Group). The localisation of the new branches responds to two main principles: - market attractiveness: client potential, competition. -achievement of a minimum market share: in the most attractive areas, we have selected those where the new openings allow us to achieve a market share of 5 p.c., which we consider to be the minimum (market share) to grant a sufficient presence to develop the business.
-17- BANCA CARIGE GROUP Main Projects of Business Plan 2005-2007
In order to achieve the goals of Business Plan 2005-2007 Banca Carige has implemented these projects:
Re-definition of the organisational structure
Commercial strengthening program
The enforcement of the collaboration “branches - insurance agents”
Liguria project
Cost management program
-18- BANCA CARIGE GROUP Main Projects of Business Plan 2005-2007
Re-definition of the organisational structure
Commercial strengthening program
The enforcement of the collaboration “branches - insurance agents”
Liguria project
Cost management program
-19- BANCA CARIGE GROUP The new organisational structure
ManManaagegementment PlanningPlanning andand PublicPublic InInternternalal // AuditingAuditing ControlControl relationsrelations AuditingAuditing
Wealth Management
Payment Loans dept. ProduProducctiontion Non life Life SGR Finance (Private and PM systems PM Corporate) PM
PM
DisDisttributionribution Liguria branches Outside Liguria branches
MarketingMarketing Insurances network
RESOURCES (Personnel and ICT) SupportSupport ADMINISTRATION
-20- PM : Product marketing BANCA CARIGE GROUP The new organisation chart
GENERALGENERAL MANAGERMANAGER
PLANNING Planning Public Internal Control and & control and relations auditing management organization of risks CONTROL
DEPUTY DEPUTY DEPUTY GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER ADMINISTRATION PRODUCTS NETWORK
•Payment General and Legal Corporate Problematic Commercial support •systems secretary Loans dept. innovatory projects credits … Retail •Marketing • Commercial Wealth ICT Liguria planning... management
Accountancy Credits recovery North Italy
Human Services centre South Italy resources
SUPPORT PRODUCTION DISTRIBUTION
-21- BANCA CARIGE GROUP Main Projects of Business Plan 2005-2007
Re-definition of the organisational structure
Commercial strengthening program
The enforcement of the collaboration “branches - insurance agents”
Liguria project
Cost management program
-22- BANCA CARIGE GROUP Analysis of the network
Operating costs Network’s Number of Millions of euro Areas Cost/Income branches
Cost/ 251 income Liguria 33% 236 Branches Rate Outside Liguria have levels of commercial :: 43% performance that have to Gross operating income be increased Millions of euro
North/ 50% 242 South Italia 589
The Bank has immediately concentrated its attention on 91 branches by means of a The analysis does not include all Group branches. “shock therapy” * Direct operating costs (personnel + rent + other direct costs)
-23- BANCA CARIGE GROUP Aims of the project
The commercial strengthening program of the network sets two macro-targets
Ensure the attainment of the commercial plan targets, allowing both short term results and the achievement of system levels (cost/income of every branch of intervention <50%) Carry out the organisational conditions (structure, skills and systems) to permanently support the Network in further commercial development of the Group (“selling more and selling better”)
-24- BANCA CARIGE GROUP Key themes of the project
1 Commercial sighting machine Identification of commercial 1.1 Creation of a customer 1.2 initiatives / alliances on analysis system that, Customer analysis Commercial for homogeneous Enterprises/alliances the target customers customer clusters, (existing and new) to identifies: support and direct the - the financial needs of commercial activity of the the target customers to network through be filled - creation of target - the possible gaps customers lists between current and - indication of the potential supply commercial approach to follow
2 Commercial planning 3 Introduction of 2 Introduction of a tool that dedicated sale provides the branches with channels 3 Channels management a structured method for - Branch commercial the attainment of the resources dedicated Call targets and the work Developers Branch center entirely to the Comm. resources planning development of the
existing customers A -> 4 Monitoring system B -> -Developers dedicated C -> to the activity of acquisition of new customers Construction of a commercial trend monitoring system with the target: 4 - Supporting out- - to help the network to analyse and to upgrade the effectiveness of the bound call center commercial action - to improve head office validation and tuning and commercial initiatives
-25- BANCA CARIGE GROUP Identification of target customers
Target customers Identifying the target customers Commercial approach
Through customer Sales activity structured by ExistinExistingg segmentation in homogeneous commercial initiatives customcustomersers groups by financial needs / developed by the central products in portfolio structures, identifying the products to boost / the supply package for the segments of target customers
Through the combination of 3 Sale activity highlighted on a NewNew approaches: limited set of attack customcustomersers – External targeted lists products – Internal referrals – Alliances with third parties
-26- BANCA CARIGE GROUP Phases and first results of the project
The first 91 N. of Area Start C/I C/I Change branches branches 2004 2005E % %
Lazio, Umbria, Phase 1 30 2004 Nov Puglia Lombardia, Phase 2 32 Piemonte, Emilia, 2005 Jan 70 66 -4 Veneto
Phase 3 29 Sicilia, Sardegna 2005 Mar
Lazio, Umbria, Phase 4 29 2005 May Puglia, Sicilia, Sardegna Phase 5 27 Lombardia, 2005 Jun Veneto
Phase 6 42 Piemonte, 2005 Sept Emilia R.
Phase 7 33 Toscana (CR 2005 Oct Carrara)
-27- BANCA CARIGE GROUP Steps/measures in the commercialisation of our products (1/2)
“Marketing Funnel” Business Developers and Call Center
35,492 35,492 23,965
11,527 4,924 More than 2,500 new 6,603 customers 4,017 More than 30 appointments 2,586 over 100 calls from call center activity Potential Contacts Not Interested Still to Visits Unsuccess Success Customers interested visit
100% 100% 68% 32% 14% 19% 11% 7%
Data at 2005/09/02
-28- BANCA CARIGE GROUP Steps/measures in the commercialisation of our products (2/2)
“Marketing Funnel” Branch actions
186,411 73,671 Branches sold ~43,000 new products (more 112,740 64,192 than 100% of period target) About 1 contact out of 3 5,098 has positive 43,450 result About 40% of potential customers must Potential Still to Number of Not Interested Customers be still Customers contact contacts interested to to buy developed buy (at least 1 contacted product sold)
100% 40% 60% 34% 3% 23% 38% of contacts
Data at 2005/09/02
-29- BANCA CARIGE GROUP Summary of results
Expected economic impact Revenues: +6 €M (+11%); +30 €M at the end of 2007 of first 91 Cost/income: - 4 p.p. (from 70% to 66%) branches at the end of 2005 Volumes: + 330 million (+17%)
A more effective way of doing which will be extended Qualitative throughout the Group over the next two years so giving a results base for sustainable and continual growth
-30- BANCA CARIGE GROUP Main Projects of Business Plan 2005-2007
Re-definition of the organisational structure
Commercial strengthening program
The enforcement of the collaboration “branches - insurance agents”
Liguria project
Cost management program
-31- BANCA CARIGE GROUP Potential of the collaboration
CustomersCustomers ofof thethe GroupGroup SharedShared customerscustomers n. of customers n. of customers [‘000] 1,750 1,719 [‘000] 1,750
1,500 1,500
1,250 1015 1,250 995 10 1,000 1,000 360 724 20 750 750
500 500 655 704 Extra Liguria 250 635 250 Liguria
0 69 30 Extra Liguria 0
es’ Liguria Shared customers nc a tal o Banks’ customers T customers Insur customers There is a high potential to “swap” customers.
-32- BANCA CARIGE GROUP How collaboration works
InsuranceInsurance BankBank hheeaadqudquaarrtetersrs hheeaadqudquaarrtetersrs Prepare insurance Prepare bank customers’ lists customers’ lists InsuranceInsurance BranchBranch agentagent managermanager contacts his customers and contacts his customers and schedules the appointments schedules the appointments with the local with the local
BranchBranch InsuranceInsurance managermanager agentagent CUSTOMERS
SALE OF BANKING AND SALE OF INSURANCE FINANCIAL PRODUCTS TO PRODUCTS TO BANK INSURANCE CUSTOMERS: CUSTOMERS: “ASSURBANCA” “BANCASSURANCE”
Exploitation of the respective customer relationships and product skills
-33- BANCA CARIGE GROUP Commercial results of the project (Assurbanca)
“Marketing Funnel” Assurbanca Project (Banking services sold by bank branches to insurance customers; 165 insurance agents and 185 branches)
55,988 41,716 a 14 % hit rate is very high, if 14,272 8,578 compared to the average levels of any other sales campaign (2- 5%) 5,694 1,444 4,250 2,286 About 75% of potential 1,964 customers have still to be contacted. Potential Still to Contacts Not Interested Still to Visits Unsuccess Success Customers contact interested visit (Contracts signed) 14% of 100% 75% 25% 15% 10% 3% 8% 4% 4% contacts
Data at 2005/09/02
-34- BANCA CARIGE GROUP Commercial results of the project (Bancassurance)
“Marketing Funnel” Bancassurance Project (Insurance services sold by insurance agents to bank customers)
32,325 17,733
Rate of success: 19% 14,592 5,611 55% of potential customers 8,981 3,753 have still to be 5,228 2436 2,792 contacted.
Potential Still to Contacts Not Interested Still to Visits Unsuccess Success Customers contact interested visit (Contracts signed)
100% 55% 45% 17% 28% 12% 16% 8% 9% 19% of contacts
Data at 2005/09/02
-35- BANCA CARIGE GROUP Commercial strengthening program and “Insieme di Più”: the expected revenues
From the projects “Commercial strengthening program” and the collaboration with the insurance agents (“Insieme di Più”) we expect revenues for € 100M, half of which coming from new customers
-36- BANCA CARIGE GROUP Main Projects of Business Plan 2005-2007
Re-definition of the organisational structure
Commercial strengthening program
The enforcement of the collaboration “branches - insurance agents”
Liguria project
Cost management program
-37- BANCA CARIGE GROUP The actions planned for Ligurian network
Carige is defining a set of interventions all over the client lifecycle process. A further phase of segmentation of customers is being implemented and consultants dedicated to affluent and small business segments have been created in addition to the ones dedicated to private, large corporate and SME segments.
consultants 3 Large corporate 94 Customer 37 lifecycle Private SME Acquiring Developing Retaining existing existing 114 new Small 200 customers customers customers Affluent Business
Mass Market
-38- BANCA CARIGE GROUP Cross selling opportunities
N° clients
200.000
150.000
100.000
Liguria Extra Liguria 50.000
0 12345678910+N° products
More than 300,000 clients (40% of the total) have only a product. This potential of growth can be exploited also in Liguria, where, though the historical presence, the cross-selling index is still low.
-39- BANCA CARIGE GROUP Affluent and small business: the beginnings
Affluent Small business
Start: July 2005 Sept. 2005
Customers: 34,000 20,000
Consultants: 114 200
Branches: 93 200
-40- BANCA CARIGE GROUP Main Projects of Business Plan 2005-2007
Re-definition of the organisational structure
Commercial strengthening program
The enforcement of the collaboration “branches - insurance agents”
Liguria project
Cost management program
-41- BANCA CARIGE GROUP Rationale
New functions at a Group level Key activities
Management of deals and purchases Centralisation Inside and outside benchmarking of the purchasing prices office service Price/volume analysis Zero based costing
Control of expense levels Support to short and medium term planning CostCost ManagManageementment Identification of areas where savings are needed and possible “Total Cost of Ownership” Process Reengineering
Two organisational units were created to manage the Group’s operating costs
-42- BANCA CARIGE GROUP Cost Management Program: results for area of intervention
Eur/000
11,000 0,4 10,8 €M 0,2 1,2 0,2 10,000 8,8 2,5 9,000 0,5 1,0 0,6 8,000 0,1 7,4 0,4 0,2 7,000 2,7 2.71 6,000 3 8,3 5,000
0,9 4,000 0,8 3,000 1,6 2,000
1,000 0,6
INFOPROVIDER SECURITY TLC IT SAVINGS HR SAVINGS POS MOTORVEHICLES TOTAL IMPACT ON (PdL) OPERATING COSTS
MAIL ECONOMATO MARKETING ENERGY TLC SAVING IMPACT ON COMMUNICATIONS IT (contracts already OPERATING COSTS (Maintenance) signed) (31Dec 2004)
Still To do Work in Already progress implemented
-43- BANCA CARIGE GROUP Carige’s project: history and results
The 2005-2007 Business Plan
TheThe adoptionadoption ofof IAIASS andand 1H20051H2005 resultsresults
Carige share performance
-44- BANCA CARIGE GROUP First Time Adoption of IAS - impacts on Consolidated Net Equity
+57+5733 +26+26 2,251 515 (*) 18 1,704
(127) 7 1,678 206 (37) (8)
Without Bank Capital and Loans to Securitization Reserves Tangible Intangible Financial Other Capital and of Italy reserves at customers for risks fixed assets fixed assets assets items reserves at 2005/01/01 2005/01/01 participation and charges revaluation post IAS
Millions of euro. Fiscal effect net. (*) The item includes the revaluation of Bank of Italy participation for €547 M
-45- BANCA CARIGE GROUP First Time Adoption of IAS - impacts on Net Equity of Banca Carige S.p.A.
+55+5511
+12+12 2,279 556 (*) (42)
1,740
1,728 (95) 178 (7) (35) 6
Without Bank Capital and Loans to Securitization Reserves Tangible Intangible Financial Other Capital and of Italy reserves at customers for risks fixed assets fixed assets assets items reserves at 2005/01/01 2005/01/01 participation and charges revaluation post IAS
Millions of euro. Fiscal effect net. (*) The item includes the revaluation of Bank of Italy participation for €539 M
-46- BANCA CARIGE GROUP 1H2005 results - Group
CONSOLIDATED HIGHLIGHTS Change % 30/6/05 31/12/04 31/12/04 30/6/04 30/6/04 6/05 6/05 (1) (2) pro forma (1) (2) pro forma (1) 12/04 p.f. 6/04 p.f. BALANCE SHEET (3) Total assets 23,473,293 20,786,317 22,139,494 20,307,174 21,629,159 6.0 8.5 Funding 16,673,129 15,247,497 15,971,166 14,658,747 15,367,653 4.4 8.5 – Customer Deposits (a) 14,922,460 14,265,671 14,989,340 13,368,235 14,077,141 -0.4 6.0 – Deposits from Banks 1,750,669 981,826 981,826 1,290,512 1,290,512 78.3 35.7 Other Financial Intermediation Activities (OFIA) (b) 17,373,712 16,615,838 16,615,838 16,081,299 16,081,299 4.6 8.0 – Assets Under Management 8,982,696 8,406,719 8,406,719 8,082,391 8,082,391 6.9 11.1 – Assets in Custody 8,391,016 8,209,119 8,209,119 7,998,908 7,998,908 2.2 4.9 Total Financial Intermediation Activities (TFIA) (a+b) 32,296,172 30,881,509 31,605,178 29,449,534 30,158,440 2.2 7.1 Lending (4) 18,913,636 17,250,447 18,057,261 16,566,315 17,628,265 4.7 7.3 – Loans to Customers (4) 12,998,485 11,610,381 12,378,009 11,417,403 12,441,304 5.0 4.5 – Loans to Banks (4) 1,231,046 1,576,866 1,576,866 1,243,804 1,243,804 -21.9 -1.0 – Securities (4) 4,684,105 4,063,200 4,102,386 3,905,108 3,943,158 14.2 18.8 Shareholders’ Equity 2,153,327 1,734,456 2,115,717 1,691,604 2,063,659 1.8 4.4 (1) IAS/IFRS 32 e 39 including. (2) IAS/IFRS 32 e 39 excluding. (3) Thousand of euro. '(4) Impariment losses including. (5) Data at 12/31/04. (6) Risk-Weightef Assets calculated on the basis of current supervision principles. Estimates on the basis of IAS/IFRS principles: a) Risk-Weighted Asset at 6/30/05: 13,809.4 million; b) Tier 1: 5.83%; c) Total Capital Ratio: 10.51%.
-47- BANCA CARIGE GROUP 1H2005 results - Group
CONSOLIDATED HIGHLIGHTS Change % 30/6/05 31/12/04 30/6/04 6/05 6/05 (1) (2) (2) 12/04 6/04 INCOME STATEMENT (3) Operating Income 398,496 732,628 0 348,834 0.0 14.2 Net income from financial operations 365,974 569,688 0 236,666 0.0 54.6 Income before Taxation 129,951 163,824 0 77,806 0.0 67.0 Net Income 82,600 111,214 0 57,102 0.0 44.7 RESOURCES (5) Number of branches 495 495 495 491 491 0.0 0.8 Number of employees 4 ,779 4,787 4,787 4,691 4,691 -0.2 1.9 FINANCIAL RATIOS Operating costs/ Operating Income 61.28% 58.32% #DIV/0! 49.65% #DIV/0! Income before Taxation/ Shareholders’ Equity 6.04% 9.45% 0.00% 4.60% 0.00% ROE 3.84% 6.42% 0.00% 3.38% 0.00% ROAE 3.87% 6.40% 3.33% SOLVENCY RATIOS (6) Risk-Weighted Assets (RWA) (3) 13,666.1 12,439.7 12,036.0 12,036.0 0.0 9.9 13.5 Tier 1 % of RWA 6.93% 7.38% 7.23% 7.23% 0.00% Total Capital % of RWA 9.58% 9.64% 9.70% 9.70% 0.00%
(1) IAS/IFRS 32 e 39 including. (2) IAS/IFRS 32 e 39 excluding. (3) Thousand of euro. '(4) Impariment losses including. (5) Data at 12/31/04. (6) Risk-Weightef Assets calculated on the basis of current supervision principles. Estimates on the basis of IAS/IFRS principles: a) Risk-Weighted Asset at 6/30/05: 13,809.4 million; b) Tier 1: 5.83%; c) Total Capital Ratio: 10.51%.
-48- BANCA CARIGE GROUP 1H2005 results - Banca Carige S.p.A.
FINANCIAL HIGHLIGHTS - Banca Carige S.p.A.
Change % 30/6/05 31/12/04 31/12/04 30/6/04 30/6/04 6/05 6/05 (1) (2) pro forma (1) (2) pro forma (1) 12/04 p.f. 6/04 p.f. BALANCE SHEET (3) Total assets 18,416,500 16,014,217 17,359,526 15,816,602 17,145,310 6.1 7.4
Funding 14,247,761 12,941,390 13,684,455 12,561,439 13,346,355 4.1 6.8 – Customer Deposits (a) 12,403,570 11,811,966 12,555,031 11,153,969 11,938,885 -1.2 3.9 – Deposits from Banks 1,844,191 1,129,424 1,129,424 1,407,470 1,407,470 63.3 31.0
Other Financial Intermediation Activities (OFIA) (b) 14,287,480 13,640,556 13,640,556 13,215,580 13,215,580 4.7 8.1 – Assets Under Management 7,459,241 6,977,540 6,977,540 6,708,456 6,708,456 6.9 11.2 – Assets in Custody 6,828,239 6,663,016 6,663,016 6,507,124 6,507,124 2.5 4.9
Total Financial Intermediation Activities (TFIA) (a+b) 26,691,050 25,452,522 26,195,587 24,369,549 25,154,465 1.9 6.1
Lending (4) 15,544,737 13,482,027 14,833,873 13,191,297 14,616,776 4.8 6.3 – Loans to Customers (4) 10,669,486 9,349,132 10,144,243 9,424,502 10,303,005 5.2 3.6 – Loans to Banks (4) 1,292,913 1,595,491 1,595,491 1,216,408 1,216,408 -19.0 6.3 – Securities (4) 3,582,338 2,537,404 3,094,139 2,550,387 3,097,363 15.8 15.7
Shareholders’ Equity 2,202,021 1,772,242 2,188,632 1,730,938 2,137,624 0.6 3.0
(1) IAS/IFRS 32 e 39 including. (2) IAS/IFRS 32 e 39 excluding. (3) Thousand of euro. (4) Impariment losses including. (5) Data at 12/31/04.
-49- BANCA CARIGE GROUP 1H2005 results - Banca Carige S.p.A.
FINANCIAL HIGHLIGHTS - Banca Carige S.p.A.
30/6/05 31/12/04 30/6/04 6/05 6/05 (1) (2) (2) 12/04 p.f. 6/04 p.f. INCOME STATEMENT (3) Operating Income 342,038 572,483 # 288,499 ## 18.6 Net income from financial operations 314,432 418,106 # 180,654 ## 74.1 Income before Taxation 137,492 112,395 # 70,534 ## 94.9 Net Income 103,504 89,969 # 59,132 ## 75.0 RESOURCES (5) Number of branches 393 393 393 # 0.0 0.0 Number of employees 3,720 3,719 3,734 # 0.0 -0.4 FINANCIAL RATIOS Operating costs/ Operating Income 51.74% 53.38% # 38.14% ##
Income before Taxation/ Shareholders’ Equity 6.24% 6.34% # 4.07% ##
ROE 4.70% 5.08% # 3.42% ## ROAE 5.21% 5.10% # 3.39% ## SOLVENCY RATIOS (6) Risk-Weighted Assets (RWA) (3) 12,073.1 10,955.8 # 10,722.1 ## 10.2 12.6 Tier 1 % of RWA 9.99% 10.73% # 10.48% ## Total Capital % of RWA 12.90% 13.19% # 13.09% ## (1) IAS/IFRS 32 e 39 including. (2) IAS/IFRS 32 e 39 excluding. (3) Thousand of euro. (4) Impariment losses including. (5) Data at 12/31/04. (6) Risk-Weightef Assets calculated on the basis of current supervision principles. Estimates on the basis of IAS/IFRS principles: a) Risk-Weighted Asset at 6/30/05: 12,179.3 million; b) Tier 1: 8.76%; c) Total Capital Ratio: 15.26%.
-50- BANCA CARIGE GROUP Carige’s project: history and results
The 2005-2007 Business Plan
The adoption of IAS and 1H 2005 results
CarigeCarige shareshare performanceperformance
-51- BANCA CARIGE GROUP 10 years of success...
Carige celebrates Today Carige is one the tenth of the main Italian anniversary of banking groups, listing: ten years of with ~1,000 points success. of sale. It includes five banks, two The confidence insurance placed in the Bank companies and an by the 40,000 asset management shareholders has company. made the share price triple, from For these reasons €1 to €3. This, our share was means, considering ranked (by “Il the annual Mondo”) as one of dividends, an the 30 most average return of reliable shares in ~16 p.c. per year. the world.
-52- BANCA CARIGE GROUP Ordinary shares
Annual average yield per Official Price (€) ordinary share since 1994 3,5 Capital gain (a) 11.2%
Dividend Yield (b) 4.6% 3,0
Total Return (a+b) 15.8% 2,5
Price 13 September 2005 (3.039 €) 2,0 MarketMarket ccaapitalisation:pitalisation: ~~ €3.4€3.4 bnbn 1,5
1,0 0 IPO 17 Jan 95 1997 1999 2001 2003 TODAY
A survey of “Il Mondo” of 1st October 2004 on the performances of 1,288 shares listed on the most important world markets (*) in the period 2000-2004 stated that carige is one of the 30 most reliable shares in the world.
(*) Mibtel, Dow Jones Eurostoxx, Smi Zurich, Ftse 100 London, Nasdaq 100 and S&P 500.
-53- BANCA CARIGE GROUP BANCABANCA CARIGECARIGE Cassa di Risparmio di Genova e Imperia
INVESTOR RELATIONS Via Cassa di Risparmio 15 16123 GENOVA Tel. 39 010 579 2701- 4877 Fax. 39 010 579 4875 e-mail: [email protected] http: www.gruppocarige.it
-54- BANCA CARIGE GROUP