BANCABANCA CARIGECARIGE SPASPA Cassa di Risparmio di Genova e Imperia
May 2006
-1- BANCA CARIGE GROUP Agenda
Introduction
The Strategic Plan 2006 - 2008
FY2005 results
Funding policy and transaction
Annexes
-2- BANCA CARIGE GROUP Agenda
Carige’sIntroductionIntroduction project: history and results
The Strategic Plan 2006 - 2008
FY2005 results
Funding policy and transaction
Annexes
-3- BANCA CARIGE GROUP Carige’s background
Independence through growth
1483 - 1989 1990 - 1998 1999 - 2004
A long history: Capital base Expansion and strengthening and diversification: one of the oldest opening to new banks in the from a regional to a shareholders: world multilocal network from a savings bank to a listed stock from a bank company to a financial group
-4- BANCA CARIGE GROUP The 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 20032003 20042004
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 collected Euro mn Year Acquisitions Euro mn
1994-95 IPO 105 1993-95-99 Cassa di Risparmio di Savona 227
1996-97 Bond conversion into new shares 61 1991-2004 Insurance companies 303
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 174
Capital increase and issue of 2003 subordinated convertible bonds 306 2004 - 2006 Banca Cesare Ponti 38
2006 -June Capital increase 200
Total 1,470 Total 1,269
The capital collected in the past was entirely invested in acquisition
-6- BANCA CARIGE GROUP The geographical expansion
1989 2006
4 7 1 1 40/62 12/30 3 35/24 2 19/19 246/15 131 54/27 3/11 1/5 246 (50%) 13 131 (96%) branches branches 33/37 2 in Liguria and in Liguria 9/34 94 (69%) in 9 Genoa province 3
7/24 27
37/53
Banking branches Insurance outlets Branches/ Branches Employees Regions Provinces outlets Employees Regions Provinces
Bank 137 2,962 4 8 Banks (*) 497 4,788 12/20 57/103 Insurances 407 378 20/20 98/103 Group 904 5,166 20/20 99/103
(*) Nice (France) included.
-7- BANCA CARIGE GROUP The Group’s structure
Fondazione CR Genova e CNCE WestLB Others Imperia 43.35% 11.63% 5.72% 39.30%
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% 100.00% 90.00% Columbus Carige Immobiliare S.p.A. CR Carrara 1,25% as own shares 60.00% 58. 75% 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.
-8- BANCA CARIGE GROUP The growth of volumes and results
LENDING AND DEPOSITS (€m) SHAREHOLDERS’ EQUITY (€m)
CAGR CAGR 47,119 2,137 +11,4% +15.1 % 8,380 226
1989 2005 1989 2005
NET PROFIT (€m) EMPLOYEES
CAGR CAGR 131.4 +12.3% 5,101 +3.5% 2,962 20.5
1989 2005 1989 2005
-9- BANCA CARIGE GROUP Agenda
Introduction
TheThe StrategicStrategic PlanPlan 20062006 -- 20082008
FY2005 results
Funding policy and transaction
Annexes
-10- BANCA CARIGE GROUP Our strategy
Independence through growth
1990 - 1998 1999 - 2004 2005 - 2008
Capital base Expansion and Rationalisation strengthening and diversification and opening to new profitability shareholders enhancement
-11- BANCA CARIGE GROUP Our mission
Quality of resources Financial National Quality of service group 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
-12- BANCA CARIGE GROUP The core priorities of the Strategic Plan
Strengthening of Profitability enhancement of subsidiaries (banks and operating efficiency insurances) and of each business area (lending, and profitability wealth management, payment system) enhancement Cost Management
Increase of volumes per employee: Growth through productivity cross-selling, up-selling and retention in Liguria improvement 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
-13- BANCA CARIGE GROUP Targets
CAGRCAGR 20052005 2008E2008E 08E-0508E-05
Deposits and lending (€ bn)47 57 6.6%
Net profit (€ mn)131 220 18.9% Shareholders’ equity (€ mn)2,137 2,688 7.9% CARIGECARIGE ROE6.2% 8.2% GROUPGROUP ROE adjusted (*)8.3% 10.3% Cost / Income Ratio 66.4% 54.7%
Tier 1 ratio6.7% 8.2% Total capital ratio 8.8% 11.8%
Deposits and lending (€ bn)39 46 5.7%
Net profit (€ mn)137 207 14.7% Dividends (€ mn)88 108 7.1% Shareholders’ equity (€ mn)2,184 2,663 6.8% CARIGECARIGE ROE6.3% 7.8% BANKBANK ROE adjusted (*)8.4% 9.7% Cost / Income Ratio 61.4% 49.9% EPS (€)0.123 0.148 6.4% BVPS (€)1.962 1.907 -0.9% P/E (€) 24.5 22.3 -3.1% P/BV (€) 1.54 1.73 4.02%
(*) Equity net of the revaluation of the participation in Bank of Italy (550 mn). -14- BANCA CARIGE GROUP A Capital Increase to continue the growth
• The Board and the Shareholders’ Meeting approved a project of capital increase to be realised in the first half of 2006. • The amount: 165 million free capital increase (IAS reserves) and ~200 millions paid capital increase. • The capital increase improves Carige Solvency ratios. • It aims at allowing the growth of the Group, both via internal and external ways.
The free increase of the share capital The paid increase of the share capital
• issue of 76,943,254 ordinary shares • nominal value: ~ €77 million • nominal amount: ~ €165 million • equivalent value: ~ €200 million • 1 new share free every 7 shares held • 1 new share every 15 shares held • price: max €2,80 each
The free capital increase will enable Carige to The paid capital increase will enable Carige to get convert in equity the reserves generated from the further financial resources suitable to continue the revaluation of fixed assets (according to the growth strategy by internal lines - through the introduction of IAS- revaluation of Bank of Italy opening of new branches - and by external lines not included)
-15- BANCA CARIGE GROUP The plan of internal growth
The Group has drawn up a plan to increase the number of its branches between 2006 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 under Carige brand and 23 under the brands of the other banks of the Group).
The localisation of the new branches responds to two main CARIGE GROUP BRANCHES NEW BRANCHES BY BANK principles: - market attractiveness: potential 59 +82 customers, competition. 579 4 - achievement of a minimum 497 market share: in the most 9 attractive areas, we have selected the provinces where the new CR 10 openings allow us to achieve a Carrara 2005 2009 market share of 5 p.c., which we TOTAL 82 consider to be the minimum (market share) to grant a sufficient presence to develop the business.
-16- BANCA CARIGE GROUP Cost Income ratio development
REVENUES
CAGR 1,011 9.1% 779 Non interest 407 income NET OPERATING INCOME CAGR: 303 10.3% Net interest income 451 CAGR: 604 CAGR 475 8.3 % 22.6% 254 2005 2008E
OPERATING COSTS 2005 2008E CAGR 560 Cost 525 2.2% income 66.4% 54.7% (1) 198 Other costs 181 CAGR: 2.7 % 354 Personnel 335 CAGR: expenses 1.9 %
(1) Cost income 2005 pro forma (provisions to reserves for risks and 2005 2008E charges not included)
-17- BANCA CARIGE GROUP Revenues development
100 1,011 132 779
Revenues Organic Additional Revenues 2005 growth revenues 2008 from strategic projects CAGR CAGR % +5+5%% +9+9% 08-0508-05
-18- BANCA CARIGE GROUP Costs evolution (only payroll and G&A)
29 (14) 23 588 15 535
Costs Organic Organic Impact Savings Costs 2005 growth growth of new from 2008 of payroll of G&A openings strategic project CAGR CAGR % +1,3+1,3%% +2,8+2,8%% +3,2+3,2% 08-0508-05
-19- BANCA CARIGE GROUP The Projects of the Strategic Plan
OnOn the the cost cost side side OnOn the the revenue revenue side side
• Back office’s centralisation • Commercial strengthening • New front office (study phase) program DistributionDistribution • Liguria project • Collaboration branches- insurance agents ProductionProduction (bancassurance&assurbanca) • JV - Consumer Credit • Redefinition of the Support organisational structure Support • Cost management
-20- BANCA CARIGE GROUP The Group re-organisation
TheThe firstfirst stepstep ofof thethe strategicstrategic plan:plan: thethe redefinitionredefinition ofof thethe organisationalorganisational structurestructure TO..
FROM .. GENERALGENERAL MANAGERMANAGER
PLANNING& CEO CONTROL STAFF STAFF
ADMIN. MARKET
ADMINISTRATION PRODUCTS NETWORK ADMINISTRATION PRODUCTS NETWORK
SUPPORT PRODUCTION DISTRIBUTION
-21- BANCA CARIGE GROUP The Projects of the Strategic Plan
COSTCOST SIDE SIDE CostCost ManagementManagement ProjectProject
What is it? A rationalisation of the cost structure
Scope of the • Reducing the cost structure project • Reengineering of the process of purchasing
Two new functions at a Group level: • Purchasing Office at a Group level Project - Management of deals and purchases highlights - Benchmarking (prices and services) - Price/volume analysis - Zero based costing method • Cost Management office - Control of expense levels - Support to short and medium term planning - Process Reengineering
Results First results of the project at 12/31/2005: • savings: 12,2 million of euro (on total target of 13,1)
-22- BANCA CARIGE GROUP The Projects of the Strategic Plan
COSTCOST SIDE SIDE CostCost ManagementManagement ProjectProject
Some Already Work in Still To do detail... implemented progress 13,1 €M € m .. 12,2 € 13,0 0,9 million of 0,1 savings at 10,0 12/31/2005
2.71 12,2 5,0
0 Global Fleet M. INFO SECURITY TLC IT ENERGY HR POS PROVIDER service TOTAL IMPACT ON MAIL MARKETING TLC IT (Maintenance) Communicatio OPERATING COSTS E-PROCUREMENT ns expenses (Stationary) (2005)
-23- BANCA CARIGE GROUP The Projects of the Strategic Plan
COSTCOST SIDE SIDE BackBack office’soffice’s centralisationcentralisation
What is it? Rengineering of the branches’ processes in order to re-focus branches on their core sale activities
Scope of the Conversion of ~100 branches’ employees from back office activities project to sales
Project • transfer of 35-40% of the back-office activities from the branches to highlights a new central office • process rengineering
-24- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE CommercialCommercial strengtheningstrengthening programprogram
What is it? A structural rengineering of the branches’ selling process
Scope of the • Improvement of the branch cost/income ratio outside Liguria: target project cost/income <50% • creation of the organisational conditions (structure, skills and systems) to permanently support the network in further commercial development of the Group (“selling more and selling better”) • more than 250 branches interested • 7 phases of the project (first phase started in November 2004, the Project last one in October 2005) highlights • a customer analysis system • identification of commercial initiatives / alliances on the target customers • a dedicated sale channels (developers and call center) • a dedicated monitoring system First results of the project at 12/31/2005: Results • Revenues: +13 €M • Branches’ Cost income: - 5 pp (from 50% to 45%) • Volumes: + 800 million
-25- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE CommercialCommercial strengtheningstrengthening programprogram
Some detail.. Number of Areas Cost Income branches 2004 Network’s Cost Branches Outside income Liguria 33% 236 ratio: Liguria had 43% levels of commercial Outside performance 242 Liguria 50% that had to be increased
-26- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE CommercialCommercial strengtheningstrengthening programprogram
“Marketing Funnel” of Business Developers and Call Center Some (acquisition of new customers) detail..
60,055 60,055 41,365 ..a high More than rate of 2,500 new success 18,690 customers 8,062 More than 10,628 30 7,995 appointments 2,633 every 100 people
Potential Contacts Not Interested Still to VisitsFailure Success contacted by Customers interested visit to acquire the call center
100% 100% 31% 18% 4%
Data at 2005/12/31
-27- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE CommercialCommercial strengtheningstrengthening programprogram
“Marketing Funnel” of Branches Some (action on existing customers) detail.. 280,509 98,240 Branches ~70,000 new ..a higher 182,269 products (more rate of 105,631 than 100% of success period target) More than 1 contact out of 3 6,871 has positive 69,767 result About 35% of potential Potential Still to Number of Not Interested Customers Customers contact contacts interested developed customers must to develop (at least 1 be still contacted product sold)
38% 100% 65% 25% of contacts
Data at 2005/12/31
-28- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE LiguriaLiguria ProjectProject
A reengineering of the sale channels in the Ligurian branches What is it? (specialisation)
Scope of the • improvement of the branch cost/income ratio in Liguria project • increase of the “revenues per customer” ratio
• Introduction of new sale channels: affluent and small business SALE CHANNEL (no. of consultants) Project Large corporate consultants 3 highlights • A big potential to exploit: Carige has the leadership in Liguria Private Pmi-Corporate 106 (market share 30%) but more than 48 200,000 customers (about 33%) Affluent Small Business have only a product and in average 98 81 each customer has 2.6 products (current account included) Mass Market
-29- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE CollaborationCollaboration branchesbranches -- insuranceinsurance agentsagents
What is it? A definition of a set of rules and methods in the relationship between branches and insurance agents
Scope of the Exploitation of the respective customer relationships: project increasing of the cross-selling ratio between banks’ customers and insurances’ customers
• monitoring and coordination system at a central level Project • a system based on customers’ lists and referrals highlights • exploitation of natural skills: banks’ employees sell banking products to insurance customers and insurance agents sell insurance products to bank customers
-30- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE CollaborationCollaboration branchesbranches -- insuranceinsurance agentsagents
Some CustomersCustomers ofof thethe GroupGroup SharedShared customerscustomers detail...
1,719 1,719 Extra Liguria 1,750 Extra Liguria Liguria Liguria ..a high 1,500 potential to exploit, 1015 1,250 995 10 mainly 1,000 outside 360 724 20 Liguria 750
500 655 n. of 704 n. of 635 250 customers 30 customers [‘000] 69 [‘000] 0 Shared customers Insurance customers Total customers Banks’ customers
-31- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE CollaborationCollaboration branchesbranches -- insuranceinsurance agentsagents
“Marketing Funnel” Assurbanca Some (Banking services sold by bank branches to insurance customers; 165 insurance agents and 185 branches) detail... 72,209 54,931 a 13 % hit .. a high rate is very rate of high, if compared to 17,278 10,816 success the average levels of any other sales campaign (2- 5%) 6,462 725 About 75% 5,737 3,412 of potential customers 2,325 have still to be contacted.
Success Potential Still to Contact Not Intereste Still to Visits Unsuccess(Banking insurance contact s intereste d visit Contracts customers d signed) 13% of 24% 9% 8% 3% 100% contacts
Data at 2005/12/23
-32- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE CollaborationCollaboration branchesbranches -- insuranceinsurance agentsagents
“Marketing Funnel” Bancassurance Some (Insurance services sold by insurance agents to bank customers) detail... 37,653 15,069 .. a high Rate of rate of success: success 22,584 18% 6,971 40% of potential 15,613 8,056 customers 7,557 3,464 have still to be 4,093 contacted
Potential Still to ContactsNot InterestedStill to VisitsFailures Success bank contact interested visit (Insurance customers Contracts signed)
18% of 100% 60% 41% 20% 11% contacts
Data at 2005/12/31
-33- BANCA CARIGE GROUP The Projects of the Strategic Plan
REVENUEREVENUE SIDE SIDE JVJV -- ConsumerConsumer CreditCredit
A newco in the sector of the consumer credit between Carige (51%) What is it? and its French shareholder CNCE (through GCE Financial Services, 49%).
Scope of the • A growth in the penetration of the consumer credit products both on project the Carige client base and on the open market • Exploitation of skills and technologies of CNCE
• starting of the commercial activities: end of 2006 Project • the newco will be located in Genoa highlights • products: personal loans and revolving cards
-34- BANCA CARIGE GROUP Agenda
Carige’s background
The Strategic Plan 2006 -2008
FY2005FY2005 resultsresults
Carige share performance
Annexes
-35- BANCA CARIGE GROUP FY2005 results
INTERMEDIATIONINTERMEDIATION ACTIVITIES ACTIVITIES
DIRECT DEPOSITS (€b) AUM (€b) AUC (€b)
+2% net of EMTN 15.0 15.0 8.4 8.4 9.7 8.2 +0,1% +15.9% +1.9%
2004 2005 2004 2005 2004 2005
LENDING (€b) MORTGAGES (€b) CONSUMER LENDING (€m)
14.0 265 12.4 185 +13.1% +32.5% +42.4% 2.7 3.5
2004 2005 2004 2005 2004 2005
-36- BANCA CARIGE GROUP FY2005 results
PROFITPROFIT & & LOSS LOSS
NET PROFIT (€m) NET INTEREST INCOME (€m) OTHER REVENUES (€m)
471 475 303 131 281 111 +18,2% +0,9% +7,9%
2004 2005 2004 2005 2004 2005
LOAN PROVISIONS (€m) OPERATING COSTS (€m) COST INCOME (%)
Anticipation of 2006 Estimates for a investment :14€m IAS like-for-like 67,9 71 basis: +74€m 525 66,4 62 -12.6% +22,8% -1.5 427
2004 2005 2004 2005 2004 2005
-37- BANCA CARIGE GROUP FY2005 results
CAPITALCAPITAL ADEQUACY ADEQUACY
2004 2004 2005 2006E The capital ante IAS post IAS post estimates capital increase adequacy is confirmed and superior to system TIER I 7,38% 7,41% 6.48% 8.01% levels; moreover, the TOTAL 9,64% 11,99% 8.33% 10.32% capital increase CAPITAL allows to improve the ratios to Capital Increase higher levels within the end of June
-38- BANCA CARIGE GROUP Agenda
Carige’s background
The Strategic Plan 2006 -2008
FY 2005 results
FundingFunding policypolicy andand transactiontransaction
Annexes
-39- BANCA CARIGE GROUP Funding policy
CARIGECARIGE FUNDING FUNDING AT AT 12/31/2005 12/31/2005
CARIGE' S funding sources
Carige Group funding mln € % Interbank deposits 981,9 6,1 Money mqarket deposits and current accounts 374,4 2,3 81,1% Other deposits 607,6 3,8
Customer deposits 12.947,6 81,1 Short term deposits 9.022,7 56,5 Medium/long term deposits and bonds 3.924,9 24,6
2,3% EMTN Programme 370,0 2,3 6,1% 6,7% Deposits 130,00,8 3,7% Bonds 240,01,5 Interbank deposits Customer deposits EMTN Programme Subordinated loans 598,3 3,7 Subordinated loans Securitisation Floating rate bonds 598,33,7 Convertible fixed rate bonds - 0,0
Securitisation 1.073,1 6,7 RMBS performing securities 1.005,7 6,3 Non performing loans securities 67,40,4 TOTAL FUNDING 15.970,9 100,0
-40- BANCA CARIGE GROUP Current Debt Maturity Profile
500
450
400 EUR 400m 2011 nc 2006 Lower Tier 2 issue 350
300
250 400
200 368
Debt outstanding (€m) outstanding Debt 150 225 100 190 186 167 160 50 55 50 25 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 201525 +
Source: Bloomberg
-41- BANCA CARIGE GROUP Issuer’s Senior Ratings
FitchFitch A A stable stable Moody’sMoody’s A2 A2 stable stable Standard&Poor’sStandard&Poor’s A-A- stable stable
-42- BANCA CARIGE GROUP Issue term sheet
Issuer: Banca Carige SpA Expected subordinated ratings: • A3/BBB+/A- Denomination: Euro 50.000 Type: subordinated lower Tier 2 Currency: Euro Nominal amount: Benchmark size Tenor: 10 year non Callable 5 year Structure and reference: FRN, Subordinated Lower Tier II debt, Euribor 3 months Step up: Coupon will step up 60bp if not called
Documentation: Standards as per Banca Carige’s ETMN Programme Listing: Luxembourg, English Law
-43- BANCA CARIGE GROUP Agenda
Carige’s background
The strategic plan 2006 - 2008
FY2005 results
Funding policy and transaction
AnnexesAnnexes
-44- BANCA CARIGE GROUP First Time Adoption of IAS - impact on Net Equity
+573+573 +23+23 2,251 515 (*) 18 1,701
(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 pre IAS post IAS
Millions of euro. Fiscal effect net.
(*) The item includes the revaluation of Bank of Italy participation for €550 M (see details in annexe 3) -45- BANCA CARIGE GROUP The participation in Bank of Italy
% participation N. of Shares Value of the participation Value of Value of each share Value of the Banking Groups owning in Bank of Italy entered in the each share at book value (*) participation Bank of Italy shares balance sheet at book value (millions of euro) (euro) (euro) (millions of euro) (a) (b)
Banca Intesa 26.8 80,430 433 5,384 45,472 3,657 San Paolo Imi 17.2 51,690 185 3,579 45,472 2,350 Capitalia 11.2 33,450 229 6,846 45,472 1,521 Unicredito 10.8 32,310 46 1,424 45,472 1,469 Bnl 2.8 8,490 117 13,781 45,472 386 Mps 2.5 7,500 4 533 45,472 341 Carifirenze 1.9 5,556 55 9,899 45,472 253
Total first seven groups 73.1 219,426 1,069 4,872 9,978 (without Carige)
Banca Carige 4.0 11,869 0.5 41 45,472 540 C.R. Savona 0.0 123 1.7 13,450 45,472 6 C.R. Carrara 0.0 101 0.4 3,497 45,472 5 Banca del Monte di Lucca 0.0 2 0.0 9,988 45,472 0
Total shares owned by Carige 4.0 12,095 2.5 208 550
Total shares 300,000
(*) Shareholders' equity (Book value) of Bank of Italy at 31 dec 2003 13,641,585,767 €
Bank of Italy's total shares 300,000 Value of each share at book value at 31 december 2003 45,472 €
-46- BANCA CARIGE GROUP The Trans-European Corridors
-47- BANCA CARIGE GROUP Financial Statements
CONSOLIDATED BALANCE SHEET
(thousands of Euros) ASSETS (thousands of Euros) LIABILITIES AND STOCKHOLDERS' EQUITY
31/12/05 31/12/04 31/12/05 31/12/04 (1) 10 -CASH AND HIGHLY LIQUID DEPOSITS 195.470 189.053 10 -AMOUNTS OWED TO BANKS 1.111.949 981.826 20 -FINANCIAL ASSETS HELD FOR TRADING 3.333.537 3.535.528 20 -AMOUNTS OWED TO CUSTOMERS 8.657.736 8.365.078 30 -FINANCIAL ASSETS DESIGNATED AT FAIR 30 -DEBT SECURITIES IN ISSUE 6.351.593 5.900.321 VALUE 602.966 527.672 40 -FINANCIAL LIABILITIES HELD FOR TRADING 130.617 73.834 40 -FINANCIAL ASSETS AVAILABLE FOR SALE 1.186.091 597.054 50 -FINANCIAL LIABILITIES DESIGNATED AT FAIR 50 -HELD-TO-MATURITY INVESTMENTS 2.764 2.907 VALUE 1.087.193 527.672 60 -HEDGING DERIVATIVES 42.401 2.813 60 -LOANS TO BANKS 855.875 1.572.180 80 -TAX LIABILITIES 331.794 172.909 70 -LOANS TO CUSTOMERS 13.661.663 11.405.391 (a) currents 102.912 25.038 80 -HEDGING DERIVATIVES 61.290 23.351 (b) differed 228.882 147.871 100 -EQUITY INVESTMENTS 69.917 66.979 100 -OTHER LIABILITIES 1.052.397 1.085.011 110 -TECHNICAL RESERVE PROVISIONS PAYABLE 110 -RESERVE FOR TERMINATION INDEMNITIES 130.966 131.353 BY REINSURERS 176.905 180.376 120 -RESERVES FOR RISKS AND CHARGES: 379.549 360.707 120 -TANGIBLE ASSETS 1.070.990 1.006.631 a) reserves for pensions and similar commitments 320.079 319.812 130 -INTANGIBLE ASSETS 676.812 673.073 b) other reserves 59.470 40.895 including: 130 -TECHNICAL RESERVE PROVISIONS 1.494.945 1.292.769 - goodwill 651.104 646.146 140 -REVALUATION RESERVES 721.982 191.073 140 -TAX ASSETS 327.298 181.779 160 -CAPITAL INSTRUMENTS 11.517 - a) currents 153.493 132.242 170 -RESERVES 26.558 168.518 b) anticipated 173.805 49.537 180 -ADDITIONAL PAID-IN CAPITAL 263.211 262.839 160 -OTHER ASSETS 844.813 824.342 190 -CAPITAL STOCK 1.113.327 1.113.327 TOTAL ASSETS 23.066.391 20.786.316 200 -OWN SHARES (-) - - 1.301 210 -MINORITY INTERESTS (+/-) 27.219 46.353 220 -INCOME (LOSS) FOR THE PERIOD (+/-) 131.437 111.214 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 23.066.391 20.786.316
2004 IAS compliant data except for IAS 32 and 39.
-48- BANCA CARIGE GROUP Financial Statements
CONSOLIDATED INCOME STATEMENT (thousands of Euros) Var % 31/12/05 30/9/05 31/12/04 2005-2004 10 -INTEREST INCOME AND SIMILAR REVENUES 894.656 673.441 752.985 18,8 20 -INTEREST EXPENSES AND SIMILAR CHARGES - 419.412 - 307.604 - 291.640 43,8 30 -NET INTEREST INCOME 475.244 365.837 461.345 3,0 40 -COMMISSION INCOME 295.462 192.336 225.481 31,0 50 -COMMISSION EXPENSES - 49.280 - 14.985 - 17.191 … 60 -NET COMMISSIONS 246.182 177.351 208.290 18,2 70 -DIVIDENDS AND OTHER SIMILAR REVENUES 24.495 13.149 5.784 … 80 -INCOME (LOSS) ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING (NET) 36.166 44.723 34.926 3,6 90 -INCOME (LOSS) FROM HEDGING ACTIVITIES - 1.269 - 617 226 … 100 -INCOME (LOSS) ON DISPOSAL OF: - 1.972 1.760 9.793 … a) loans 2.075 1.948 - 430 … b) financial assets available for sale 1.314 937 10.223 -87,1 d) financial liabilities - 5.361 - 1.125 - … 110 -NET VALUE ADJUSTMENT ON FINANCIAL ASSETS DESIGNATED AT FAIR VALUE - 277 - - … 130 -GROSS OPERATING INCOME 778.569 602.203 720.364 8,1 140 -NET VALUE ADJUSTMENT ON: - 54.276 - 53.599 - 162.939 -66,7 a) loans - 53.049 - 50.834 - 163.348 -67,5 b) financial assets available for sale - - 125 -100,0 d) other financial assets - 1.227 - 2.765 284 … 150 -NET INCOME FROM FINANCIAL MANAGEMENT 724.293 548.604 557.425 29,9 160 -NET PREMIUMS 651.853 428.950 632.025 3,1 170- NET INCOME (LOSS) FROM INSURANCE MANAGEMENT - 643.146 - 427.028 - 613.618 4,8 180- NET RESULT FROM FINANCIAL AND INSURANCE MANAGEMENT 733.000 550.526 575.832 27,3 190 -ADMINISTRATIVE COSTS: - 534.638 - 376.243 - 492.906 8,5 a) staff costs - 334.935 - 234.714 - 311.392 7,6 b) other administrative costs - 199.703 - 141.529 - 181.514 10,0 200 -NET PROVISIONS FOR RISKS AND CHARGES - 8.320 - 3.599 1.284 … 210 -AMORTIZATION AND DEPRECIATION OF TANGIBLE FIXED ASSETS - 18.058 - 13.533 - 17.971 0,5 220 -AMORTIZATION AND DEPRECIATION OF INTANGIBLE FIXED ASSETS - 11.735 - 11.154 - 12.128 -3,2 230 -OTHER OPERATING EXPENSES AND REVENUES 47.850 39.922 94.444 -49,3 240 -OPERATING COSTS - 524.901 - 364.607 - 427.277 22,8 250 -INCOME (LOSS) FROM EQUITY INVESTMENTS 5.376 2.256 14.507 -62,9 280 -INCOME (LOSS) FROM DISPOSAL OF INVESTMENTS 3.333 124 762 … 290 -OPERATING INCOME (LOSS) FROM ORDINARY ACTIVITIES BEFORE TAXES 216.808 188.299 163.824 32,3 300 -TAX EXPENSE (INCOME) RELATED TO PROFIT OR LOSS FROM ORDINARY ACTIVITIES - 81.745 - 74.920 - 49.688 64,5 310 -INCOME (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 135.063 113.379 114.136 18,3 330 -NET INCOME (LOSS) FOR THE PERIOD 135.063 113.379 114.136 18,3 340 -MINORITY INTERESTS - 3.626 2.149 - 2.922 24,1 350 -NET INCOME (LOSS) FOR THE PERIOD AFTER MINORITY INTERESTS 131.437 111.230 111.214 18,2
2004 IAS compliant data
-49- BANCA CARIGE GROUP 1Q06 Add on
PROFITPROFIT && LOSSLOSS
NET PROFIT (€m) NET INTEREST INCOME (€m) NET COMMISSIONS (€m)
126 43 111 62 26 +63.9% +13.6% 55 +13.7%
1Q05 1Q06 1Q05 1Q06 1Q05 1Q06
LOANS PROVISIONS (€m) OPERATING COSTS (€m) COST INCOME (%)
66.8 14 57.5 9 120 121 -37.4% +0.8% -9.3
1Q05 1Q06 1Q05 1Q06 1Q05 1Q06
-50- BANCA CARIGE GROUP I 1Q06 Add on
INTERMEDIATIONINTERMEDIATION ACTIVITIESACTIVITIES && RATIOSRATIOS
DIRECT DEPOSITS (€b) AUM (€b) LENDING (€b)
14.2 14.6 14.6 8.7 9.8 12.7 +0,2% +13.3% +12.2%
1Q05 1Q06 1Q05 1Q06 1Q05 1Q06
ROE (%) TIER I (%) TOTAL CAPITAL (%) Paid Capital 2.4% net of Paid Capital increase Bank of Italy increase not included revaluation not included 9.78 1.85 8.35 7.01 6.64 1.17
1Q05 1Q06 1Q05 1Q06 1Q05 1Q06
-51- BANCA CARIGE GROUP II Disclaimer
This document has been prepared by Banca Carige Spa solely for information purposes and for use in presentation of the Group’s strategies and financials. The information contained herein has not been independently verified. No representation or warranty, express or implied., is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither the company, its advisors or representatives shall have any liability whatsoever for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The forward-looking information contained herein has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary.
This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
The distribution of this presentation in certain jurisdictions may be restricted by law. Recipients of this presentation should inform themselves about and observe such restrictions.
The information herein may not be reproduced or published in whole or in part, for any purpose, or distributed to any other party. By accepting this document you agree to be bound by the foregoing limitations.
-52- BANCA CARIGE GROUP Contacts
INVESTOR RELATIONS IR Manager, Ennio La Monica Roberta Famà Maurizio Marchiori Matteo Campodonico
Tel. 39 010 579 4877 Fax. 39 010 579 4875 e-mail: [email protected] http: www.gruppocarige.it
-53- BANCA CARIGE GROUP