Deutsche Boerse/NYSE Deal Far from Done

Monday, February 14, 2011 Deutsche Boerse/NYSE deal far from done by Davidmailto:[email protected] Brierley The proposed merger between Deutsche Boerse AG and NYSE Euronext may hit a regulatory wall. Although the deal has been widely celebrated by analysts and markets, there is a very real problem in merging two of the world’s largest derivatives and equities trading businesses, not least in Europe. In many areas, the combined market shares are very high indeed. A particular problem is European exchange-traded derivatives, widely perceived to form the heart of the deal. In Europe, Eurex, owned by Deutsche Boerse, and Liffe, owned by NYSE Euronext, operate an effective duopoly. This is where cost reduction could make a real difference: Derivatives are growing for NYSE Euronext, while its cash equities business is suffering from the climate of investor uncertainty. “There will be a competition review by the European authorities. Already in derivatives trading, there is not a level playing field. However, there is an opportunity for disposals to get the merger through,” Raul Sinha, a bank analyst at Nomura, told SNL Financial. In a note, Richard Repetto of Sandler O’Neill wrote: “We note that this transaction provides significant scale/overlap in European futures, European cash equities, and U.S. equity options. Therefore, we’d expect a significant antitrust review in each of these areas.” The merged entity would have 43% of U.S. equity options and 30% of pan-European cash equities, aside from near total dominance of European exchange-traded derivatives. Although weak volume growth and rising competition from new exchanges threaten the equities business, the options business is better protected from bank-sponsored competition. Merging Eurex and Liffe means effectively combining two jewels in one crown. Without this, the deal would be significantly less attractive in terms continued on page 2 mailto:[email protected]

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Deutsche Börse/NYSE continued of cutting costs and growth potential, although Deutsche Boerse recently slashed costs is likely to cap any potential further increase has suffered from lackluster trading in European equities deriva- in scale benefits,” Sinha said. tives too. The tie-up between Deutsche Boerse and NYSE Euronext looks good “In the derivatives area, there are very high market shares. If the on paper, creating a giant with revenue equivalent to 90% of CME Deutsche Boerse had to sell Liffe, that would be unattractive,” a Group Inc.’s, excluding energy. However, the regulators, perhaps Frankfurt-based analyst, who declined to be named, told SNL, pushed by the international bank clients of the exchanges, might observing that the parties involved would probably have sounded well stop it happening as envisaged. If asset disposals are required out the competition authorities before proposing the deal. in Europe, they might well undermine the economic rationale of “The big question from my perspective is the demands regula- the deal. Moreover, there are significant technology risks that could tors make for agreeing to the deal. The question is whether the beset the combined entity and prevent it from achieving its cost- European authorities will not demand the sale of Liffe and Eurex,” cutting goals. James Angel, a professor at Georgetown University in Washington, Consolidation among exchanges has been a feature of the sector. told the Handelsblatt. This reflects the need for scale to combat both cost and revenue There are also significant execution risks. Cost synergies are esti- pressures. Yet there is a significant list of failed deals in recent years. mated at €300 million, equivalent to 14% of the combined cost As Sinha at Nomura points out, London Stock Exchange Group base. These are said to come from economies of scale in technol- Plc has had approaches from Deutsche Boerse, Euronext and The ogy, clearing operations, market operations and corporate center NASDAQ OMX Group Inc., among others. functions. The proposed merger between Deutsche Boerse and NYSE Euronext The NYSE was looking to set up its own clearing business in Europe. is far from becoming a done deal. Using Deutsche Boerse’s Clearstream technology instead represents COMPANIES REFERENCED IN THIS ARTICLE: the opportunity for significant savings. However, NYSE Euronext NYSE Euronext NYX clears thorough LCH.Clearnet, and moving onto the Clearstream platform may face contractual restrictions. CME Group Inc. CME Deutsche Börse AG DB1 Combining technology or choosing one technology over another, often a make-or-break decision, is fraught, and the exchanges have London Stock Exchange Group Plc LSE a history of errors. “On paper, it looks good. There are risks in IT, The NASDAQ OMX Group Inc. NDAQ and it is a real question whether it will work in reality,” the Frankfurt Close: $28.12 +0.30 (+1.1%) Vol: 2,613,123 analyst said. http://www.snl.com/interactivex/feedback.aspx?Id=12331115&Action=estory E-mail this story. “The complexity of integration would be significant. Achieving cost synergies in an environment where both exchanges have already Merger Stories

Deal Announcement At a press conference, Aydin said Türkiye Halk Bankasi posted a Türkiye Halk Bankasi AS HALKB 2 billion Turkish lira profit for 2010 and increased the number of Close: TL12.45 +0.10 (+0.8%) Vol: 8,015,455 employees on its payroll to 13,450 from 12,505 in 2009. Over the same period, the number of branches increased to 705 from 665 in Türkiye Halk Bankasi AS will acquire a major stake in Macedonian the year-ago period. IK Bank, Türkiye Halk Bankasi general manager Hüseyin Aydin said, according to a Feb. 11 report from Andolu News Agency. European Financials Daily The Financial Industry Delivered to Your Desk via E-mail Each Morning Published by: SNL Financial LC (ISSN 2156-5392) © 2011

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Merger Stories Aydin said the bank “will be one of the leading banks [in Deal Completion Macedonia].” Banca Popolare dell’Emilia Romagna Scarl BPE As of Feb. 10, 1 Turkish lira was equivalent to 62.72 U.S. cents. Close: €9.18 -0.04 (-0.4%) Vol: 334,484 E-mail this story. Banco Santander SA SAN http://www.snl.com/interactivex/feedback.aspx?Id=12332226&Action=estory Close: €8.84 +0.09 (+1.0%) Vol: 45,459,890 Deal Approval Banca Popolare dell’Emilia Romagna Scarl announced Feb. 10 that unit Meliorbanca SpA sold Meliorbanca Private SpA to Banco Türkiye Is Bankasi AS ISCTR Santander SA subsidiary Santander Private Banking SpA for about Close: TL5.22 +0.04 (+0.8%) Vol: 50,913,100 €27 million. Türkiye Is Bankasi AS received approval from the Russian authorities According to the statement, the price is based on Meliorbanca for its acquisition of Bank Sofia, Sabah reported Feb. 11, citing a Private’s latest book value and the funds it has under management statement from the lender. and administration. At the time the deal was first announced in The acquisition is pending approval by the Russian central bank. September 2010, the price based on the net asset value as of June In 2010, it was revealed that Türkiye Is Bankasi agreed to acquire 30, 2010, and the value of assets managed by the unit would have Bank Sofia for $40 million. been about €32 million. On the day the closing of the deal was announced, Santander paid http://www.snl.com/interactivex/feedback.aspx?Id=12330226&Action=estory E-mail this story. an initial tranche of about €19 million to Meliorbanca. However, the final price will be subject to a partial post-closing adjustment depending on the amount of funds held under management and administration by Meliorbanca Private, the statement said, without giving a specific time frame. All the required approvals for the deal have already been received. Banca Popolare dell’Emilia Romagna said the sale is part of its strategy to simplify and rationalize the structure of the group. It is also

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Merger Stories continued in line with the bank’s intention to focus its service model in the The board of directors of Banco Base said Feb. 3 that it approved private banking and wealth management segment on the branch the transfer of assets to the new institution from the four cajas that networks of the group’s commercial banks. constitute the bank. http://www.snl.com/interactivex/doc.aspx?CDID=A-12329606-12848Feb 10, 11 Banca popolare dell’Emilia Merger Press Release http://www.snl.com/interactivex/doc.aspx?CDID=A-12331972-13104Feb 11, 11 Caja Mediterráneo Press Release http://www.snl.com/interactivex/feedback.aspx?Id=12330176&Action=estory E-mail this story. http://www.snl.com/interactivex/feedback.aspx?Id=12332110&Action=estory E-mail this story.

Deal Update/ Other Rumored Transaction Banca Popolare di Milano Scarl PMI Bank of America Corp. BAC Close: €3.03 -0.02 (-0.5%) Vol: 5,907,863 BNP Paribas SA BNP BNP Paribas SA BNP Citadel LLC Close: €56.72 +0.26 (+0.5%) Vol: 3,650,627 Citigroup Inc. C Cardif Assurances VIE Credit Suisse Group AG CSGN Covea Re Societe de Reassurance Mutuelle Close: SFr.41.60 -0.50 (-1.2%) Vol: 11,626,180 Banca Popolare di Milano Scarl is likely to choose a buyer for an 80% Deutsche Bank AG DBK stake in insurer Bipiemme Vita by the end of February, Il Sole 24 Ore Close: €46.17 +0.16 (+0.3%) Vol: 5,956,084 reported Feb. 11. Goldman Sachs Group Inc. GS The newspaper estimates that it is unlikely that the offers will have JPMorgan Chase & Co. JPM been evaluated in time for the bank’s board meeting scheduled for Feb. 15 but that they are likely to have been evaluated in time for Lehman Brothers Holdings Inc. the next board meeting Feb. 28 or March 1. Lime Brokerage LLC The two bidders are reportedly French insurance companies Covea Merrill Lynch & Co. Inc. Re Societe de Reassurance Mutuelle and Cardif Assurances VIE, a Morgan Stanley MS BNP Paribas SA unit. Of the two, Covea is the more likely winner Nomura Holdings Inc. 8604 because the offer from Cardif Assurances is too low, according to Close: ¥522.00 as of Feb 10, 11 various reports. Société Générale SA GLE The 80% stake in Bipiemme Vita contains the life and the nonlife Tradebot Systems Inc. assurance divisions of BNP Paribas. It was reported Jan. 7 that UBS AG UBSN Bipiemme Vita received permission to offer casualty insurance from the Italian insurance regulator. Wedbush Inc. Italian banks, under fire over their low capital ratios compared to Wedbush Securities Inc. their European partners, are under pressure to recapitalize ahead of BATS Global Markets and Chi-X Europe said Feb. 11 that they the stringent capital requirements Basel III is due to impose. Asset extended exclusive negotiations regarding the potential sale of Chi- sales are seen as one of the best ways to do this. X Europe to BATS Global Markets. French banks, which have a significant presence in Italy, are consid- BATS Global Markets is owned by a group of its users, including ered the most likely buyers. Bank of America Corp., Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Getco LLC, JPMorgan Chase & Co., the estate of The deal, assuming Italian regulators give their consent, is expected Lehman Brothers Holdings Inc., Lime Brokerage LLC, Morgan Stanley, to reach financial close toward the end of the first half. Tradebot Systems Inc. and Wedbush Inc.’s Wedbush Securities Inc. http://www.snl.com/interactivex/feedback.aspx?Id=12330732&Action=estory E-mail this story. Chi-X Europe is owned by a group of financial institutions including BNP Paribas SA, Citadel LLC, Citigroup, Credit Suisse, Fortis, GETCO Caja Mediterráneo CAM Europe Ltd., Goldman Sachs Group Inc., Nomura Holdings Inc. Close: €6.43 +0.03 (+0.5%) Vol: 37,361 unit Instinet Inc., Merrill Lynch & Co. Inc. Morgan Stanley, Optiver, Caja Cantabria Société Générale SA and UBS AG.

Caja de Ahorros de Asturias http://www.snl.com/interactivex/doc.aspx?CDID=A-12330376-13362Full filing Caja de Extremadura E-mail this story. Banco Base began its joint commercial activity Feb. 11, Caja http://www.snl.com/interactivex/feedback.aspx?Id=12330356&Action=estory Mediterráneo, or CAM, said in a statement the same day. NYSE Euronext NYX The group also launched a three-year structured deposit product, Deutsche Börse AG DB1 which each caja that participates in Banco Base will offer in its area German regulators and European antitrust authorities are keeping a under its own branding. close watch on the potential deal between Deutsche Boerse AG and The group also combined their network of more than 3,000 ATMs. NYSE Euronext, Reuters reported Feb. 11. According to the statement, both milestones show the advance of The deal could also face opposition from U.S. regulators if they are the merger process, which incorporates CAM, Caja de Ahorros de not prepared to allow their mega exchange to be merged with a Asturias, Caja de Extremadura and Caja Cantabria. foreign entity.

Merger Stories continued Executives from Frankfurt and New York are working on the details However, Itar-Tass reported Feb. 10 that Russia’s minister of eco- of the deal, but they have yet to find solutions for key obstacles. nomic development, Elvira Nabiullina, is backing an open auction Reuters reported that German and French regulators are seeking to for the privatization of Bank of Moscow. preserve the status of their respective financial centers. “From the point of view of the investment climate, transparency and Separately, The New York Times’ DealBook reported Feb. 10 that Rep. effectiveness of procedures, in my view an auction would be more Ted Deutch, D-Fla., is demanding that the NYSE retain its name, correct,” Nabiullina is reported to have said. which has been in existence since 1863. New York City leaders are As of Feb. 10, 1 Russian ruble was equivalent to 3.41 U.S. cents. also reportedly seeking to maintain the city’s status as the leading financial capital. http://www.snl.com/interactivex/feedback.aspx?Id=12330254&Action=estory E-mail this story.

Deutsche Boerse and NYSE Euronext are still looking for a name WestLB AG for the combined company, which would be incorporated in the Netherlands with dual headquarters in New York and Frankfurt. All WestLB AG will need billions of euros of additional capital if it is split the local exchanges will retain their names, the news outlet said, up, the Handelsblatt reported Feb. 11. citing “a person briefed on the matter.” Citing sources who are part of the negotiations, the German business daily said the unit earmarked to continue the landesbank’s http://www.snl.com/interactivex/feedback.aspx?Id=12330216&Action=estory E-mail this story. business with the sparkassen will require substantial financial help OAO VTB Bank VTBR if it is to be relaunched. Close: RUB0.09 +0.00 (+1.3%) Vol: NM With possible total assets of €40 billion to €60 billion and expected Bank of Moscow MMBM risk-weighted assets of €20 billion, the new owners would have to Close: RUB1,217.99 +47.94 (+4.1%) Vol: 13,275 inject about €1.5 billion to €2 billion of fresh capital into the com- OAO TranskreditBank TCBN pany, the Handelsblatt said. Close: RUB20.35 +0.12 (+0.6%) Vol: 17,600 It added that the majority owners of WestLB, the Rhineland sparkas- OJSC Alfa-Bank sen and those in Westphalia-Lippe, will contribute to that figure. The Russian Federal Anti-Monopoly Service has given OAO VTB Bank Other members of the savings banks association are reportedly permission to buy the city of Moscow’s stake in Bank of Moscow, in likely to make financial contributions, too. However, according to the addition to OAO TranskreditBank, Vedomosti reported Feb. 11. Handelsblatt, the German government will not do so, but it may issue new guarantees for parts of WestLB that are to be transferred to its However, OJSC Alfa-Bank and Marimba Trading are still in the run- bad bank. These could reportedly amount to up to €90 billion. ning to buy the Moscow bank, it added. Friedrich Merz, the man who has been charged with finding a buyer for Moscow Deputy Mayor Andrei Sharonov said the government may the bank, will present the binding offers WestLB received at the Feb. 11 transfer its Bank of Moscow assets to the Central Fuel Co., also meeting of the bank’s supervisory board, the Handelsblatt said. scheduled to be privatized. WestLB has to submit its new restructuring plan to the EU on Feb. 15. A deal between city authorities and VTB Bank could see the latter buy the city’s share in Bank of Moscow for 90 billion Russian rubles, http://www.snl.com/interactivex/feedback.aspx?Id=12330872&Action=estory E-mail this story. while Marimba is reported to have offered 91 billion rubles for the same stake.

Interest Rate Scoreboard Friday Thursday Month Prior Year Feb 11, 11 Feb 10, 11 Ago Yr End Ago 30-Day LIBOR 0.27 0.26 0.26 0.26 0.23 3-Month LIBOR 0.31 0.31 0.30 0.30 0.25 6-Month LIBOR 0.47 0.46 0.46 0.46 0.39 1-Year LIBOR 0.80 0.80 0.78 0.78 0.86 Note: Rates are USD-denominated.

Company News UK and Ireland Fitch Ratings on Feb. 10 affirmed the long-term issuer default rating QBE Insurance Group Ltd. of QBE Insurance Group Ltd. at A and the insurer financial strength ratings of its units at A+. Balboa Insurance Co. Bank of America Corp. BAC The units are QBE Insurance (Australia) Ltd., QBE Insurance (International) Ltd., QBE Insurance Corp., QBE Insurance (Europe) QBE Insurance (Europe) Ltd. Ltd., QBE Hongkong & Shanghai Insurance Ltd., QBE Reinsurance QBE Insurance Corp. (Europe) Ltd. and QBE Reinsurance Corp. QBE Reinsurance (Europe) Ltd. The ratings affirmations follow the announcement of QBE’s 10-year dis- QBE Reinsurance Corp. tribution agreement with Bank of America Corp. and the acquisition of the nonlife insurance portfolio of BofA unit Balboa Insurance Co.

Company News continued Fitch said the ratings actions reflect QBE’s diverse business profile, In addition, the agency has placed the long-term unguaranteed strong capitalization, good liquidity, solid operating results, and senior unsecured debt ratings of these banks on review for further conservative underwriting and investment approach. possible downgrade. The outlook on the ratings is stable. Meanwhile, the senior unsecured and bank deposit ratings of KBC Bank Ireland Plc were downgraded to Baa3/P-3 from Baa2/P-2. The E-mail this story. http://www.snl.com/interactivex/feedback.aspx?Id=12330334&Action=estory outlook is negative, in line with that on KBC Bank NV. Anglo Irish Bank Corp. Ltd. The downgrade reflects Moody’s reduction in its assumption of sys- Anglo Irish Bank Corp. Ltd. CFO Maarten Van Eden will leave the temic support for the domestic Irish banks. bank at an agreed date between April 30 and June 30, The Irish Times http://www.snl.com/interactivex/feedback.aspx?Id=12330132&Action=estory E-mail this story. reported Feb. 11, citing a statement by the bank. Van Eden, as part of the new management team put in by the gov- GlobeOp Financial Services SA GO. ernment at the bank, has occupied the post for just more than a Close: £4.24 +0.02 (+0.4%) Vol: 26,707 year. GlobeOp Financial Services SA said Feb. 10 that David Gelber joined its board as senior independent director, effective immediately. Reportedly, Van Eden has “grown unhappy with the day-to-day interaction and process of dealing with the State authorities,” the http://www.snl.com/interactivex/doc.aspx?CDID=A-12330227-14642Feb 10, 11 GlobeOp Financial Services Press Release paper said. http://www.snl.com/interactivex/feedback.aspx?Id=12330429&Action=estory E-mail this story. Anglo Irish is on the lookout for a successor. http://www.snl.com/interactivex/feedback.aspx?Id=12329857&Action=estory E-mail this story. London Stock Exchange Group Plc LSE London Stock Exchange Group Plc’s MTS said Feb. 10 that it signed Bank of Ireland BIR a memorandum of understanding with the Czech Republic Ministry Close: €0.38 +0.02 (+6.8%) Vol: 6,116,635 of Finance to launch an electronic interdealer market for local gov- Bank of Ireland said Feb. 10 that following the expiry for its exchange ernment debt. offers targeting two of its outstanding Canadian dollar lower Tier 2 MTS, which will also provide real-time market data for the platform, securities worth C$366 million, it had received propositions to expects the market to begin operations by the second quarter. exchange C$138 million, or 38%, of these securities. MTS added that some international banks have already expressed The tendered securities are expected to be exchanged on or about an interest in taking part in the Czech government’s bond market, Feb. 17 at a discount into €30 million and C$34 million government once it is operational on the MTS platform. guaranteed senior securities, both with a 6.75% coupon due Jan. 30, 2012. http://www.snl.com/interactivex/doc.aspx?CDID=A-12330114-14902Feb 10, 11 London Stock Exchange Group Press Release

The equity accretion for the Bank of Ireland Group from these http://www.snl.com/interactivex/feedback.aspx?Id=12330395&Action=estory E-mail this story. exchange offers is expected to be €45 million. Royal Bank of Scotland Group Plc RBS http://www.snl.com/interactivex/doc.aspx?CDID=A-12330301-15159Feb 10, 11 Bank of Ireland Press Release Close: £0.44 0.00 (-0.7%) Vol: 60,324,820 http://www.snl.com/interactivex/feedback.aspx?Id=12329536&Action=estory E-mail this story. Lloyds Banking Group Plc LLOY Close: £0.67 +0.01 (+1.6%) Vol: 121,230,800 Bank of Ireland BIR Royal Bank of Scotland Group Plc has reduced by 27% to less than Allied Irish Banks Plc AIB £950 million the size of its bonus pool for investment bankers, Close: €0.28 +0.01 (+4.1%) Vol: 1,095,905 Financial News reported Feb. 10. Anglo Irish Bank Corp. Ltd. Also, according to terms agreed under Project Merlin, Lloyds Banking EBS Building Society Group Plc and RBS will have to hand out bonuses to executive direc- Irish Life & Permanent Plc IL0 tors entirely in the form of shares that do not vest until 2013. Close: €0.97 +0.04 (+4.3%) Vol: 253,926 Headhunters cited by the publication said several high-level execu- Irish Nationwide Building Society tives may leave the banks, which as bailed-out banks will be most KBC Bank Ireland Plc hit by the restrictions imposed by Project Merlin. Recruiters predict that the remuneration at the two banks will probably be a fraction KBC Bank NV of what competitors offer. Moody’s on Feb. 11 downgraded the unguaranteed senior unsecured debt ratings of Bank of Ireland to Ba1/Not-Prime from Baa2/P- http://www.snl.com/interactivex/feedback.aspx?Id=12330724&Action=estory E-mail this story. 2 and those of Allied Irish Banks Plc to Ba2 from Baa3. France and Benelux The ratings for EBS Building Society and Irish Life & Permanent Plc were downgraded to Ba2/Not-Prime from Baa3/P-3. KBC Group NV KBC Close: €29.80 -0.40 (-1.3%) Vol: 813,935 The ratings for Anglo Irish Bank Corp. Ltd. and Irish Nationwide KBC Group NV said Feb. 10 that on Jan. 28, the Brussels Commercial Building Society were lowered to Caa1 from Ba3. Court ruled in its favor on a case brought by lingerie manufacturer Van de Velde NV.

Company News continued Van de Velde had sought compensation for investment losses it Jean-Laurent Bonnafé, COO of BNP Paribas, said both the French incurred on the purchase of CDOs from the bank. bank and Fortis had a large footprint in Europe and were very active However, the court agreed with KBC’s argument that as a corporate in exporting countries. client, Van de Velde had been properly informed about the risks The Financial Times said Feb. 11 that the bank aims to increase its involved in investing in CDOs. corporate client business market share by 15%, and it also cited Bonnafé as saying the bank had revenues of more than €7 billion http://www.snl.com/interactivex/doc.aspx?CDID=A-12323421-13879Feb 10, 11 KBC Group NV Press Release from corporate and commercial banking activities. http://www.snl.com/interactivex/feedback.aspx?Id=12329463&Action=estory E-mail this story. The newspaper said the plan will yield an additional €70 million to €100 million of revenue. ageas SA/NV AGS Close: €2.32 +0.03 (+1.4%) Vol: 10,385,900 A Feb. 10 Dow Jones Newswires report quoted Bonnafé as saying he foresees BNP Paribas’ operations in Italy continuing to grow organi- Belgium-based insurer ageas SA/NV, the successor to failed group cally but that he did not rule out considering potential acquisitions Fortis, said Feb. 11 that the Brussels commercial court ruled its if interesting assets went on sale. undated convertible floating-rate notes are valid and won’t need to be redeemed at face value. http://www.snl.com/interactivex/doc.aspx?CDID=A-12331864-13359Feb 10, 11 BNP Paribas SA Investor Presentation

The Floating Rate Equity-linked Subordinated Hybrid (FRESH) http://www.snl.com/interactivex/feedback.aspx?Id=12330428&Action=estory E-mail this story. securities, which pay a variable rate equal to 3-month EURIBOR plus 1.35%, were issued in 2002 by Fortfinflux (now Ageasfinflux) to Germany, Switzerland and Austria improve the capital position of the former Fortis group. Deutsche Bank AG DBK Two Luxembourg funds holding 458 FRESH securities, each with a Axel Weber, the head of Germany’s Bundesbank, will step down nominal value of €250,000 were demanding they be declared null from his post April 30, various media outlets reported Feb. 11. and void and that their full nominal value of €114.5 million be reim- bursed on the grounds that ageas had deceived investors. In total, The reported announcement from the government comes just two €1.25 billion FRESH notes were issued, ageas said. days after the Bundesbank denied rumors “concerning an impend- ing statement on the professional future” of Weber, who has served The FRESH securities have no maturity date. They last traded at 50% as Germany’s central bank chief since 2004. of their face value and the holder may exchange them for ageas shares, formerly Fortis shares, when the stock price rises to €31.50 Reports in the German media earlier Feb. 11 suggested that German — more than 13x their closing price Feb. 10 — according to a Feb. Chancellor Angela Merkel wanted Weber to step down soon. 11 report from Bloomberg News. Earlier reports had suggested that Weber, once seen as the likeliest Shares were halted earlier Feb. 11 ahead of the expected ruling. successor to ECB head Jean-Claude Trichet later in 2011, could be a possible successor to Deutsche Bank AG CEO Josef Ackermann. http://www.snl.com/interactivex/doc.aspx?CDID=A-12330751-13875Feb 11, 11 ageas SA/NV Press Release According to a Bloomberg News report, Weber’s departure leaves http://www.snl.com/interactivex/doc.aspx?CDID=A-12333653-13106Feb 11, 11 ageas SA/NV Press Release the door wide open for other potential replacements for the ECB’s Trichet, who leaves in November. http://www.snl.com/interactivex/feedback.aspx?Id=12332763&Action=estory E-mail this story. http://www.snl.com/interactivex/feedback.aspx?Id=12332562&Action=estory E-mail this story. BNP Paribas SA BNP BGL BNP Paribas ACE Ltd. ACE Close: $63.44 -0.31 (-0.5%) Vol: 1,424,111 Fortis Bank SA/NV ACE Ltd. appointed Graham Chesman multinational claims client BNP Paribas SA said Feb. 10 that it aims to have 3,000 new corporate executive for ACE European Group, according to a Feb. 11 news clients by the end of 2012 and to reach a sizable market position in release. Germany and the Netherlands. In this new role, Chesman will provide leadership and co-ordina- According to presentation materials, the bank is boosting its corpo- tion within Europe for the claims service offering and delivery to all rate activities to help corporate clients and their subsidiaries with multinational clients for the ACE Group. Chesman most recently was their European operations and expansion plans. U.K. and Ireland claims manager at the company. The French banking giant said its strategy, called One Bank for http://www.snl.com/interactivex/doc.aspx?CDID=A-12330197-12851Feb 11, 11 ACE Ltd. Press Release Corporates in Europe, has been made possible with the merger of BNP Paribas’ network of business centers with the networks of Fortis http://www.snl.com/interactivex/feedback.aspx?Id=12332836&Action=estory E-mail this story. Bank SA/NV and BGL, creating BGL BNP Paribas, in 2009. “The combination of BNP Paribas and Fortis gives BNP Paribas an ACE Ltd. ACE unrivaled position in the European corporates market,” the bank ACE Ltd. on Feb. 10 announced a number of management changes said in the materials. within Southern Europe. The French bank said it is targeting Europe because it is the richest Maurizio Ferrario, previously country manager for ACE Italy, assumed continent in the world today, and because 190 of the top 500 largest the position of senior adviser, focusing on sales and distribution in corporations measured by revenue are based there. support of ACE’s Italian customer segmentation strategy.

Company News continued Angel Diaz, country manager for ACE Iberia, assumed the position of Proton Bank SA PRO regional manager of ACE Southern Europe. Based in Madrid, he now Close: €0.90 +0.05 (+5.9%) Vol: 1,422,025 has additional responsibility for ACE Italy. Athens-based Proton Bank said Feb. 10 that it issued €60.0 million The company intends to name a replacement to Ferrario as local worth of subordinated bonds through a private placement. country manager for ACE Italy, based in Milan, in due course. The notes, which bear an issue date of Feb. 8, have a maturity of 10 http://www.snl.com/interactivex/doc.aspx?CDID=A-12322021-14139Feb 10, 11 ACE Ltd. Press Release years. Further, the bank said it carries the right to early redemption of the E-mail this story. http://www.snl.com/interactivex/feedback.aspx?Id=12326320&Action=estory notes once five years have passed from the issue date. Southern Europe http://www.snl.com/interactivex/doc.aspx?CDID=A-12329518-12591Feb 10, 11 Proton Bank Press Release

Emporiki Bank of Greece SA TEMP http://www.snl.com/interactivex/feedback.aspx?Id=12330597&Action=estory E-mail this story. Close: €1.55 -0.04 (-2.5%) Vol: 583 Emporiki Bank of Greece SA on Feb. 11 posted a fourth-quarter 2010 UniCredit SpA UCG net attributable loss of €128.5 million, narrowing from its prior- Close: €1.86 +0.01 (+0.7%) Vol: 311,761,000 quarter loss of €209.9 million as provisions decreased by 24.7% Analysts have welcomed the news that UniCredit SpA’s new head quarter over quarter. of corporate and investment banking, as well as deputy general Fourth-quarter net banking income came to €207.7 million, a 7.8% manager, is former Société Générale SA banker Jean-Pierre Mustier, increase on the previous quarter’s €192.6 million, as net interest despite the fact that the Frenchman headed the division where income rose to €171.7 million from €162.9 million in the third quar- rogue trader Jérôme Kerviel worked. ter, and fee and commission income rose to €28.4 million from €23.7 The Italian banking giant’s board announced Mustier’s appointment million. Feb. 10, saying it will be effective March 14. The bank said “prudent provisioning policy and efficient credit Mustier beat the CEO of Brussels-based investment firm RHS assessment methods allowed for the gradual deceleration of cost of International, Leonhard Fischer, in the race to succeed Sergio risk in the last two quarters, easing the pressure on net results.” Ermotti, who left for UBS AG after being overlooked for the role of Provisions were €195.2 million in fourth quarter 2010, compared to general manager. €259.1 million in the third quarter. When speaking to SNL Financial on Feb. 11, an Italian analyst who Nevertheless, loan loss provisions for full year 2010 swelled by 55.1% asked not to be named said the appointment is a positive devel- from the year-ago period, to €1.02 billion, taking its net attributable opment because it shows UniCredit’s commitment to its invest- up 49.9% year over year to €873.5 million. The bank attributed this ment banking division, which was questioned when former CEO to the “increasingly difficult economic environment.” Alessandro Profumo left last year. The analyst added that the hire is likely to strengthen the division. Net banking income rose 2.4% on a year earlier to €768.6 million, driven by a 20.0% jump in net interest income to €649.8 million. Keefe, Bruyette & Woods analyst Aldo Comi also pointed out that Income from fee and commissions fell 6.7% to €111.2 million. when Federico Ghizzoni was appointed as UniCredit’s new CEO it was rumoured that the bank’s CIB unit could be weakened. The bank outlined the reorganization of its branch network, where- by about 20% of its branches were upgraded, several operational “But it seems like the appointment is a quality one, so it will give a and credit processes were centralized, and a more “customer-ori- lot of importance to the CIB division, which contributes a lot of the ented corporate culture” was established. revenues of the group,” he told SNL. “Looking at his CV, it seems like a good appointment.” http://www.snl.com/interactivex/doc.aspx?CDID=A-12332602-14643Dec 31, 10 Emporiki Bank Annual Report That CV includes almost 20 years at Société Générale, where Mustier http://www.snl.com/interactivex/feedback.aspx?Id=12332577&Action=estory E-mail this story. led the corporate and investment banking unit between 2003 and 2008 before becoming responsible for global investment manage- Piraeus Bank SA TPEIR ment and services. Close: €1.56 (No change) Vol: 5,712,788 However, having joined the French banking giant in 1987, he left in The chairman of Piraeus Bank SA, Michalis Sallas, said Greece’s August 2009 when France’s market regulators investigated him for domestic banking groups will not consider M&A until market condi- alleged insider trading. He was subsequently fined €100,000 for the tions stabilize, Naftemporiki reported Feb. 10. offense, although he did not face criminal charges. In a recent interview quoted by the paper, Sallas said bank M&A In its profile about Mustier prior to his appointment, MF said Feb. 9 should not be anticipated because the institutional framework does that he offered to resign after SocGen trader Jérôme Kerviel brought not favor such activity. the bank to its knees in January 2008 by incurring trading losses of Additionally, Sallas was upbeat in regards to the course of the Greek €4.9 billion. economy and predicted positive European decisions related to The Italian business daily pointed out that SocGen rejected Mustier’s Greece. offer to resign even though his division had accumulated €2.1 bil- Sallas also predicted that all Greek banks will succeed in the upcom- lion of losses that were not related to Kerviel, whom Mustier ing stress tests, the paper added. famously called a liar during the former trader’s trial. http://www.snl.com/interactivex/feedback.aspx?Id=12330413&Action=estory E-mail this story. However, shortly afterward he was reportedly farmed out to the global investment management and services division, which the

Company News continued bank no longer considered among its core assets prior to the unit’s €2.1 billion of losses that were not related to Kerviel, whom Mustier merger with Crédit Agricole SA’s asset management division. called a liar during the former trader’s trial. Commenting on those developments, WestLB analyst Christoph MF added that in the late 1990s, Mustier “contributed to make Bossmann told SNL that “it was clear that Société Générale would SocGen big” by focusing on equity derivatives. Under his guidance, have had to find a different solution seeing that Kerviel was a mem- the related unit reportedly grew from 25 staff in 1990 to 3,500 at ber of Mustier’s division.” the end of 2006, becoming the most profitable equity derivatives He conceded that the Kerviel affair damaged Mustier’s image, but division in the world and winning The Banker’s award for best equity added that his talents and his achievements in building Société derivatives house five times in a row. Générale’s investment banking arm eclipse his connection to the In April 2008 he was even named as a potential candidate for the scandal. post of SocGen CEO when Daniel Bouton stepped down, although “I’d say prior to the trading scandal he was one of the most esteemed Frédéric Oudea was subsequently appointed to the role, MF said. European bankers, and was considered the designated successor of However, according to the newspaper, Mustier was then farmed out CEO Daniel Bouton,” Bossmann said. “You have to see that Société to the global investment management and services division, which Générale was a comparatively small bank at the beginning of the the bank no longer considered among its core assets prior to the ‘90s that hardly, if at all, meddled in investment banking. And the unit’s merger with Crédit Agricole SA’s asset management division. people who were responsible for building the derivatives business, http://www.snl.com/interactivex/doc.aspx?CDID=A-12328508-13103Feb 10, 11 UniCredit SpA Press Release both in fixed income and on the equity side, were Daniel Bouton and Jean-Pierre Mustier. They were the division’s figureheads, and http://www.snl.com/interactivex/feedback.aspx?Id=12330059&Action=estory E-mail this story. their success in building it is undoubted.” MF also acknowledged as much, saying Mustier “contributed to Banca Cívica make SocGen big” by focusing on equity derivatives. The newspa- Banca Cívica said Feb. 10 that Spain’s Fondo de Reestructuración per said under his guidance, the related unit reportedly grew from Ordenada Bancaria provided it with financial assistance of €977 25 staff in 1990 to 3,500 at the end of 2006, becoming the most million. profitable equity derivatives division in the world and winning The The financial support took place in the form of the FROB subscribing Banker’s award for best equity derivatives house five times in a row. to preferred shares issued by the lender, with the fund approving According to Bossmann, “That, above all, is Mustier’s reputation.” the move Dec. 22, 2010. He added: “Mustier’s appointment shows that UniCredit is intent on According to a report Feb. 8, Banca Cívica will enter the stock strengthening its CIB division.” exchange “imminently,” listing up to 40% of the bank’s capital. http://www.snl.com/interactivex/doc.aspx?CDID=A-12328508-13103Feb 10, 11 UniCredit SpA Press Release http://www.snl.com/interactivex/doc.aspx?CDID=A-12332945-13613Full filing http://www.snl.com/interactivex/feedback.aspx?Id=12332119&Action=estory E-mail this story. http://www.snl.com/interactivex/feedback.aspx?Id=12332865&Action=estory E-mail this story.

David Hutter Banco Pastor SA PAS mailto:[email protected] Close: €3.94 +0.04 (+1.2%) Vol: 32,111 UniCredit SpA UCG Caja España UniCredit SpA’s board on Feb. 10 named Jean Pierre Mustier deputy Unnim general manager and head of corporate and investment banking, Banco Pastor SA is open to negotiating possible alliances with cajas effective March 14. as Spain goes through “the biggest financial restructuring processes Mustier beat the CEO of Brussels-based investment firm RHS ever seen,” but so far, there are no deals. International, Leonhard Fischer, in the race to succeed Sergio During the bank’s conference call following the release of 2010 Ermotti, who left for UBS AG after being overlooked for the role of results Feb. 11, Chairman José María Arias denied that the bank was general manager. in contact with any caja already, but he confirmed that it is holding Between 2003 and 2008, he led Société Générale SA’s corporate and conversations with investment banks regarding the topic. investment banking unit before becoming responsible for global “Our objective is to take advantage of any interesting opportunities investment management and services. He was at the bank from under these circumstances. … We are on the lookout and keeping 1987 until August 2009 and worked as an adviser to various financial an eye on what is taking place,” he said, pointing out that the bank institutions thereafter. is also looking into increasing its market share, as it has been doing Mustier left the French banking giant when France’s market regu- already in its home region of Galicia. lators investigated him for alleged insider trading. He was subse- So far there are no deals, but Daniel Pingarrón from IG Markets in quently fined €100,000 for the offense, although he did not face Madrid told SNL Financial on Feb. 11 that there have been rumors criminal charges. of a possible alliance between the institution and one of the smaller In its profile about Mustier prior to his appointment, MF said Feb. 9 savings banks in the country, “since the bank would want to be that he offered to resign after SocGen trader Jérôme Kerviel brought leader of the process … and the remaining cajas are small compared the bank to its knees in January 2008 by incurring trading losses of to Pastor.” €4.9 billion. The bank is planning to start contacting savings banks that do not However, according to the Italian business daily, SocGen decided yet have a banking license to negotiate alliances to create a larger to reject Mustier’s offer even though his division had accumulated and listed financial institution, according to a Feb. 11 report from

Company News continued Spanish newspaper Cinco Días, which mentioned the new Caja Net interest income came in at €469.4 million in 2010, a 12.7% drop España and Unnim as the most likely targets. from 2009. When asked about a potential merger with Portugal’s Banco Espírito The bank said its core capital ratio increased to 8.46% and its Tier Santo SA, the bank’s chairman said he would not make any further 1 ratio reached 10.63% at Dec. 31, 2010, compared to 8.35% and comments on the topic. 10.49%, respectively, at the end of September 2010. “We will have to wait a bit longer to see whether any mergers will go Elsewhere, net loans to clients increased 6.2% to €21.65 billion and ahead,” IG Markets’ Pingarrón said. deposits went up 6.4% to €15.62 billion in the full year, “in the midst Earlier in the day, the La Coruna, Spain-based bank posted a 38.6% of the deposit war.” drop in 2010 net profit to €62.1 million, compared to €101.1 million Banco Pastor disclosed that its exposure to the real estate and con- in the year-ago period. struction sector at the end of 2010 reached €4.81 billion, represent- The fall in net profit is partially attributable to the move to set aside ing 19.7% of its loan book. €103 million in generic provisions, which led to a 99.7% coverage The Spanish bank plans to double its profit and achieve a core capi- ratio, as the bank prepares for a “complicated” 2011. Pingarrón tal ratio of 9.8% in the next three years, while reducing its depen- noted that the increase in provision was well-received by the mar- dency on the wholesale markets by 20%. Furthermore, Banco Pastor kets, especially given the circumstances in Spain. said it plans to take part in the restructuring process of the Spanish Meanwhile, the delinquency rate decreased to 5.14% at the end of financial sector, following rumors that the institution could merge 2010. with Portugal’s Banco Espírito Santo SA. Banco Pastor also disclosed that its exposure to the real estate and http://www.snl.com/interactivex/doc.aspx?CDID=A-12330105-15157Feb 11, 11 Banco Pastor SA Earnings Release construction sector at the end of 2010 reached €4.81 billion, repre- http://www.snl.com/interactivex/feedback.aspx?Id=12330100&Action=estory E-mail this story. senting 19.7% of its loan book. Net interest income for the year came in at €469.4 million in 2010, a Banco Sabadell SA SAB 12.7% drop from 2009. CEO Jorge Gost said January figures already Close: €3.08 0.00 (-0.1%) Vol: 16,934,810 show an improvement in net interest income, reaching levels last Banco Sabadell SA said Feb. 11 that it obtained capital gains total- seen in April and May 2010. ing €86.5 million after completing a €491.8 million “equity for debt” Furthermore, pressure is building up on Spanish financial insti- transaction. tutions, and it is not only the cajas moving to comply with new It will allocate the sum to strengthen provisions and asset cover- government guidelines, as banks are now required to reach a core age. capital ratio of 8% by summer. The bank said the tender took place at a discount for four references The Spanish bank plans to double its profit and achieve a core capi- of debt securities — preference shares and subordinated bonds tal ratio of 9.8% in the next three years, while reducing its depen- — issued by the Banco Sabadell group in 2006 and 2010, which was dency on the wholesale markets by 20%. For now, the bank said announced Jan. 31. its core capital ratio increased to 8.46% and its Tier 1 ratio reached Banco Sabadell said Feb. 1 that it boosted its core capital ratio to 10.63% at Dec. 31, 2010, compared to 8.35% and 10.49%, respec- 8.88% via the capital increase. tively, at the end of September 2010. It said Feb. 11 that the €491.8 million, the maximum nominal amount Elsewhere, net loans to clients increased 6.2% to €21.65 billion and covered by the tender, was accepted in full by bondholders. deposits went up 6.4% to €15.62 billion in the full year, “in the midst of the deposit war,” which executives said the bank has decided not The lender said the net capital gain on the transaction is equivalent to join. to a 10 basis point increase in core capital. http://www.snl.com/interactivex/doc.aspx?CDID=A-12330105-15157Feb 11, 11 Banco Pastor SA Earnings Release The operation falls under Banco Sabadell’s active capital management strategy and forms part of the “equity for debt” transaction http://www.snl.com/interactivex/doc.aspx?CDID=A-12330223-14646Feb 11, 11 Banco Pastor SA Investor Presentation that commenced Jan. 31, with an accelerated bookbuilding of up to 10% of capital. http://www.snl.com/interactivex/doc.aspx?CDID=A-12331163-13367Feb 11, 11 Banco Pastor SA Transcript http://www.snl.com/interactivex/doc.aspx?CDID=A-12332016-14389Feb 11, 11 Banco Sabadell SA Press Release http://www.snl.com/interactivex/doc.aspx?CDID=A-12331163-13367Feb 11, 11 Banco Pastor SA Transcript http://www.snl.com/interactivex/feedback.aspx?Id=12333156&Action=estory E-mail this story. http://www.snl.com/interactivex/feedback.aspx?Id=12331511&Action=estory E-mail this story. Leticia Camargo von Wissell Caja Madrid mailto:[email protected] Despite troubles in the Spanish economy, 10 executives and former executives of Caja Madrid shared a €25 million “special bonus” pay- Banco Pastor SA PAS out in December 2010, Expansión reported Feb. 11. Spain’s Banco Pastor SA on Feb. 11 posted a 38.6% drop in 2010 net According to the publication, the savings bank’s chairman, Rodrigo profit to €62.1 million, compared to €101.1 million in the year-ago Rato, is set to propose to the board the abolition of the compensa- period. tion scheme, which was put in place in 2007 by the former admin- The fall in net profit is partially attributable to the move to set aside istration. €103 million in generic provisions, which led to a 99.7% coverage The long-term incentive, without a time limit and paid every four ratio, as the bank prepares for a “complicated” 2011. Meanwhile, the years, was established in 2007 and connected to the institution’s delinquency rate decreased to 5.14% at the end of 2010. yearly results, Expansión wrote, noting that only two out of the 10

Company News continued directors, Matías Amat and Ildefonso Sánchez, remain as high-rank- par to provide the government with compensation for the 2013-14 ing executives in the caja and that three others now occupy lower- 9.7% coupons. rank posts at the savings bank. The report said under the most benign scenario for Danske, the The payments occurred despite Caja Madrid having received €4.47 prepayment charge could be 1.68 billion kroner, but under the most billion of capital support from the Spanish government’s Fondo de punitive scenario it could be 3.36 billion kroner, with the base case Reestructuración Ordenada Bancária, following the decision to form at the midpoint between the two. an alliance with Bancaja and five other smaller savings banks. The base case would lead to an increase of 6% to 2012 estimated http://www.snl.com/interactivex/feedback.aspx?Id=12331685&Action=estory E-mail this story. earnings from combined equity raising and hybrid prepayment. UBS analysts said they are waiting for visibility regarding the hybrid La Caixa prepayment, and said they do not expect the charge to be booked Barcelona-based La Caixa said Feb. 10 that it issued €2.0 billion in upfront, but rather spread as an interest expense from the second five-year mortgage bonds. quarter of 2012 to the first quarter of 2014. According to a press release, the notes were priced at 220 basis “We see this process as weighing on the upwards earnings pressure points above the midswaps rate, in the first placement since the from the fall away of the expensive hybrid coupon,” they said. institution announced its reorganization. They added that in their base-case scenario, they estimate at least The issuance met an “excellent demand” of €2.50 billion from a total about 300 million kroner of post-tax impact to 2012 profitability, 2% of 110 investors, out of which 78% were international, mainly from higher than the current level, from hybrid prepayment, driven by the U.K., with 26.11%. the fall away of 1.7 billion kroner of tax-deductible coupon cost, and The Barcelona-based bank said its core capital ratio stood at 8.6% the estimated 1.3 billion kroner annual prepayment charge. at the end of 2010. They also assumed an increase of 4%, or 500 million kroner, to 2012 http://www.snl.com/interactivex/doc.aspx?CDID=A-12326486-11570Feb 10, 11 La Caixa Press Release estimated net profit from higher interest on equity, assuming a 2.5% post-tax yield on the proposed 20 billion kroner capital raise. http://www.snl.com/interactivex/feedback.aspx?Id=12330184&Action=estory E-mail this story. The analysts also downgraded their EPS estimates for 2011 and 2012, by 22% and 4%, respectively, in response to the bank’s fourth- Nordic Countries quarter results. Amagerbanken A/S AMAG They said their key area of uncertainty continues to be asset quality, Close: Dkr3.45 as of Feb 04, 11 where their 2011 estimates now include an 800 million kroner provi- Danske Bank A/S DANSKE sion for Amagerbanken A/S under bank package III. Close: Dkr125.20 +0.10 (+0.1%) Vol: 5,045,142 The analysts also estimated a Basel III impact from the capital raise Danske Bank A/S CEO Peter Straarup ruled out any potential bid for of 120 basis points, in keeping with company guidance, but also the failed Amagerbanken A/S, Politiken reported Feb. 10. deducting an incremental 3 billion kroner from core capital to “We have no interest in acquiring parts of Amagerbanken,” he said, reflect the subordinated debt in Danica which caps insurance capi- though he also said the bank’s doors are “open for customers of tal deductions. Amagerbanken who want to make the move.” As of Feb. 10, 1 Danish krone was equivalent to 18.28 U.S. cents. http://www.snl.com/interactivex/feedback.aspx?Id=12330581&Action=estory E-mail this story. http://www.snl.com/interactivex/feedback.aspx?Id=12332713&Action=estory E-mail this story.

Danske Bank A/S DANSKE Pohjola Bank Plc POH1S Amagerbanken A/S AMAG Close: €9.70 +0.08 (+0.8%) Vol: 505,073 While still awaiting visibility on the terms of Danske Bank A/S’ rene- Pohjola Bank Plc said Feb. 10 that it will redeem €150 million of gotiated 24 billion Danish kroner hybrid prepayment, USB analysts lower Tier 2 subordinated notes, due to mature in 2016, early. estimate that the bank could face a charge of about 11% or 2.5 bil- The Finnish FSA granted the bank permission to redeem the notes lion kroner under their base-case scenario. in March. The notes were issued in March 2006. In a Feb. 11 report, UBS analysts described the Danish lender’s 2010 The redemption will reduce the company’s capital adequacy ratio fourth-quarter results as “weak,” owing to higher-than-expected by 1.1 percentage points and the Tier 1 ratio by 0.3 percentage provisions and soft trading revenues. point. As of Dec. 31, 2010, the group’s capital adequacy ratio was The bank on Feb. 10 reported fourth-quarter net profit of 1.07 bil- 13.3% and its Tier 1 ratio was 12.5%. lion kroner, up from 887 million kroner in the previous quarter. http://www.snl.com/interactivex/doc.aspx?CDID=A-12328209-13105Feb 10, 11 Pohjola Bank Plc Press Release The lender’s end-of-year results were “disappointing,” but the news was buoyed by the company’s well-received plan for a rights issue, http://www.snl.com/interactivex/feedback.aspx?Id=12330506&Action=estory E-mail this story. analysts told SNL Financial on Feb. 10. DnB NOR ASA DNBNOR The UBS analysts said their base-case assumption is that Danske Close: NKr85.30 +3.40 (+4.2%) Vol: 10,010,200 will succeed in negotiations for the prepayment of the outstanding DnB NOR ASA has taken no benefit from the Norwegian govern- government hybrid in 2012. They said they expect the terms of pre- ment’s bank guarantee fund and has never indicated a need to bor- payment to be balanced, “benign” enough to provide an incentive row from the fund, E24 reported Feb. 10. for Danske to complete its exit, but offering enough of a premium to

Company News continued Bjørn Erik Næss, the bank’s CFO, maintained that DnB NOR is in a Türkiye Is Bankasi AS ISCTR solid state with growth in volumes, margins and profits material- Akbank TAS AKBNK izing in all segments of its domestic and international operations, Close: TL7.84 -0.02 (-0.3%) Vol: 9,459,944 the news source added. Asya Katilim Bankasi AS ASYAB The company reported its 2010 earnings earlier Feb. 10, showing a Close: TL2.83 (No change) Vol: 10,552,060 record profit for the fourth quarter. HSBC Bank AŞ http://www.snl.com/interactivex/feedback.aspx?Id=12330523&Action=estory E-mail this story. Türk Ekonomi Bankasi AS TEBNK Close: TL1.97 -0.05 (-2.5%) Vol: 6,406,178 The NASDAQ OMX Group Inc. NDAQ Turkish banks are rapidly preparing to launch activities denomi- The NASDAQ OMX Group Inc. said Feb. 11 that it appointed Pall nated in Chinese yuan, Bloomberg-HT reported Feb. 11. Hardarson president of NASDAQ OMX Iceland. Lira-yuan operations were first announced by Akbank TAS, followed by Hardarson has served as NASDAQ OMX Iceland’s head of opera- Türkiye Is Bankasi AS, HSBC Bank AS and Türk Ekonomi Bankasi AS. tions and vice president for nine years, working closely with and Now, Islamic lender Asya Katilim Bankasi AS has taken a similar step, reporting to former President Thordur Fridjonsson, “who regretfully Bloomberg-HT reported, quoting unnamed sources. has passed away,” Hans-Ole Jochumsen, president of NASDAQ OMX Nordics, said in a news release. According to the paper, the rush to yuan stems from the 35% rise in imports from China and 41% rise in exports to China in Turkey in 2010. http://www.snl.com/interactivex/doc.aspx?CDID=A-12330697-12846Feb 11, 11 NASDAQ OMX Group Inc Press Release The news source added that Asya Katilim Bankasi is near completion http://www.snl.com/interactivex/feedback.aspx?Id=12330635&Action=estory E-mail this story. of the infrastructure for yuan-denominated activities. E-mail this story. Eastern Europe http://www.snl.com/interactivex/feedback.aspx?Id=12330262&Action=estory BRE Bank SA BRE Türkiye Is Bankasi AS ISCTR Close: zl322.20 +4.20 (+1.3%) Vol: 15,798 Ersin Özince, the head of the Banks Association of Turkey, said 2010 PKO Bank Polski SA PKO proved to be better than expected for Turkish lenders, but he added Close: zl42.11 +0.16 (+0.4%) Vol: 1,580,870 that 2011 will see the negative effect of central bank policies on Slawomir Lachowski, the former head of BRE Bank SA will join the growth and profitability, Hurriyet reported Feb. 11. race to become head of Poland’s largest bank PKO Bank Polski SA, “It is not possible to say that the central bank’s policy of tightening Parkiet reported Feb. 11. was met with pleasure,” he said, according to the paper. “But I hope Lachowski will compete against Zbigniew Jagiello, who has been it will have a positive effect in the long run,” Özince added. head of PKO Bank for the past 1.5 years. Mariusz Grendowicz, Özince, who is also the CEO of Türkiye Is Bankasi AS, was speaking Lachowski’s deputy at BRE Bank, is also a potential candidate. Feb. 10 on the CNBC-e news channel, the paper added. PKO Bank expects to announce in early March a decision on who will Özince predicted that total profitability in the banking sector might lead the bank. It then plans to recruit a new management board. decline by 10% in 2011. The term of the current board is to expire in May. “Individual loans will slow down,” he was quoted as saying by As of Feb. 10, 1 Polish zloty was equivalent to 35.05 U.S. cents. Hurriyet. “Despite this, the increase in loan volume will be at 20% to 25%. The measures will force an increase in lira retail interest rates. E-mail this story. http://www.snl.com/interactivex/feedback.aspx?Id=12330364&Action=estory Deposit volume may rise by 15% to 20%. Banks will prefer to borrow through bond issuances.”

http://www.snl.com/interactivex/feedback.aspx?Id=12330363&Action=estory E-mail this story.

Pan-European and Industry News ECB forced to buy Portuguese bonds A Portuguese minister told the newspaper that the country had after yields jump to record highs made “good progress” in reducing the deficit, but that this was not yet being reflected in bond yields. He also ruled out turning to the The ECB was forced to buy Portuguese bonds after yields jumped to IMF and the EU for assistance. record euro-era highs of 7.63% almost a month since it suspended its bond-buying program, London’s Financial Times reported Feb. 10. Enam Ahmed, a ratings analyst with Moody’s, told the FT that Portugal’s high fiscal deficit, poor economic prospects and large Following the purchase, Portuguese bonds were trading at a yield debt refinancing needs were putting the country back in the spot- of 7.29%. But many analysts have warned that Portugal’s sovereign light. debt is unsustainable if yields on 10-year bonds remain above 7%. The IMF and some EU members have been urging Portugal to http://www.snl.com/interactivex/feedback.aspx?Id=12332267&Action=estory E-mail this story. accept a bailout, saying an aid package provided now would be cheaper than one provided later.

Pan-European and Industry News continued Report: Iran’s Bank Melli sought to acquire Turkish bank The tests, which the banks were told to commence conducting from The U.S. Embassy in London sent a cable to Washington, saying Bank mid-December 2010, are aimed at identifying and preparing for Melli, Iran’s biggest state bank, hoped to acquire a Turkish bank to potentially fatal events. evade U.N. sanctions, Gazeteport reported Feb. 10. The newspaper reported that scenarios the banks are being forced Bank Melli allegedly finances the nuclear energy activities of Iran, to consider include a flu pandemic, a drying up of food reserves and which claims that its purposes are peaceful, the paper said. even a major internal fraud. The document cited by Gazeteport was dated Jan. 22, 2008, and An FSA spokeswoman said the purpose of the exercise is to push the the cable quoted Patrick Guthrie of the U.K. Treasury as saying his “business model to the point it collapses,” the newspaper reported. agency “understood the importance of the issue.” If vulnerabilities are found in the business models, the banks’ capital levels may have to be raised. The U.K. Treasury promised to investigate Bank Melli’s activities in London and how to cut its Turkish operations, according to Further, foreign banks with units in the U.K. will also need to under- Gazeteport. go the tests; however, they enjoy a more gradual timetable than their British counterparts. http://www.snl.com/interactivex/feedback.aspx?Id=12330389&Action=estory E-mail this story. http://www.snl.com/interactivex/feedback.aspx?Id=12330139&Action=estory E-mail this story. Report: UK FSA’s ‘reverse stress tests’ may force banks to hold more capital Under new, so-called “reverse stress tests” requested by the U.K. FSA, banks could be forced to hold more capital, The Wall Street Journal reported Feb. 11. Company Meetings NONE Type Codes: AM Asset Manager B Bank BD Broker/Dealer FT Financial Technology I Insurance IB Insurance Broker IC Investment Company SB Savings Bank SL Specialty Lender

Dividend Announcements Ticker Dividend Amount Current Company (Type) Country Decl’d Ex-Date Payable Period Current Last Yield (%) INITIAL DIVIDENDS Lån & Spar Bank LASP(SB) Denmark Feb 09, 11 Mar 17, 11 Mar 22, 11 Annual Dkr 5.0000 NM 1.85 INCREASED DIVIDENDS Nes Prestegjelds NESG(SB) Norway Feb 09, 11 * Annual NKr 4.7900 4.0500 6.18 Sparebank Pohjola Bank Plc POH1S(B) Finland Feb 09, 11 Mar 30, 11 Apr 12, 11 Annual AU$ 0.4000 0.3400 4.12 Sampo Plc SAMAS(I) Finland Feb 09, 11 Apr 15, 11 Apr 28, 11 Annual € 1.1500 1.0000 5.11 Svenska SHB.A(B) Sweden Feb 09, 11 Mar 24, 11 Mar 31, 11 Annual $ 9.0000 8.0000 4.20 Handelsbanken AB THB Group Plc THB(IB) UK Feb 09, 11 Mar 02, 11 Apr 05, 11 Semiannual £ 0.0161 0.0150 5.70 Union Financiere UFF(AM) France Feb 09, 11 Apr 29, 11 May 04, 11 Semiannual € 1.6000 1.0000 10.34 de France DECREASED DIVIDENDS Sparebanken NONG(SB) Norway Feb 09, 11 Mar 30, 11 Annual € 5.7500 6.7500 4.49 Nord-Norge ASA SUSPENDED DIVIDENDS Sandnes SADG(SB) Norway Feb 09, 11 Sparebank ASA Spar Nord Bank A/S SPNO(B) Denmark Feb 09, 11 REGULAR DIVIDENDS HSBC Trinkaus TUB(BD) Germany Feb 09, 11 Jun 08, 11 Jun 08, 11 Annual € 2.5000 2.5000 2.78 & Burkhardt AG *No Ex-Date exists for this dividend. The date shown is the Record Date. Type Codes: AM Asset Manager B Bank BD Broker/Dealer FT Financial Technology I Insurance IB Insurance Broker IC Investment Company SB Savings Bank SL Specialty Lender

FactSet Mean Estimate Changes Ticker FactSet Mean EPS Est. # of Price/Est. Company (Type) Currency Period From To % Ests. EPS (x) Aurskog Sparebank AURG (SB) NKr 2011Y 17.38 16.72 -3.80 1 11.78 Banco Pastor PAS (B) € 2010Y 0.18 0.19 5.56 12 20.50 Banco Santander SAN (B) € 2011Y 1.10 1.11 0.91 33 7.88 Banesto BTO (B) € 2011Y 0.72 0.71 -1.39 16 8.91 Bank Handlowy BHW (B) zl 2011Y 6.77 6.84 1.03 8 12.87 Bank Handlowy BHW (B) zl 2012Y 7.77 7.81 0.51 6 11.27 BBVA BBVA (B) € 2011Y 1.09 1.10 0.92 36 8.02 Bk Saint Petersbrg BSPB (B) RUB 2011Y 18.96 18.92 -0.21 12 9.25 Bk Saint Petersbrg BSPB (B) RUB 2012Y 24.68 24.63 -0.20 11 7.10 BNP Paribas SA BNP (B) € 2011Y 7.24 7.21 -0.41 28 7.83 BNP Paribas SA BNP (B) € 2012Y 8.43 8.44 0.12 22 6.69 BRE Bank BRE (B) zl 2012Y 27.14 27.07 -0.26 12 11.75 Crédit Agricole SA ACA (B) € 2010Y 0.92 1.04 13.04 30 11.16 Crédit Agricole SA ACA (B) € 2011Y 1.70 1.84 8.24 29 6.31 Crédit Agricole SA ACA (B) € 2012Y 2.15 2.35 9.30 25 4.94 Credit Suisse Grp CSGN (B) SFr. 2011Y 4.93 4.95 0.41 28 8.51 Credit Suisse Grp CSGN (B) SFr. 2012Y 5.62 5.63 0.18 25 7.48 Danske Bank DANSKE (B) Dkr 2011Y 15.81 15.62 -1.20 22 8.01 Danske Bank DANSKE (B) Dkr 2012Y 20.44 20.32 -0.59 19 6.16 Deutsche Bank AG DBK (B) € 2011Y 5.79 5.78 -0.17 32 7.96 Deutsche Bank AG DBK (B) € 2012Y 6.56 6.55 -0.15 31 7.02 Deutsche Postbank DPB (B) € 2012Y 2.53 2.52 -0.40 14 8.39 DnB NOR DNBNOR (B) NKr 2011Y 8.22 8.24 0.24 22 9.94 DnB NOR DNBNOR (B) NKr 2012Y 9.01 9.05 0.44 19 9.05 Euler Hermes ELE (I) € 2011Y 6.79 6.82 0.44 11 10.75 Euler Hermes ELE (I) € 2012Y 7.53 7.52 -0.13 10 9.75 FHB Jelzalogbank FHB (B) Ft. 2012Y 97.45 97.44 -0.01 2 10.68 GrenkeLeasing GLJ (SL) € 2010Y 1.99 2.00 0.50 4 19.76 GrenkeLeasing GLJ (SL) € 2012Y 2.96 3.02 2.03 4 13.08 Handelsbanken SHB.A (B) kr 2011Y 19.78 19.96 0.91 21 10.64 Handelsbanken SHB.A (B) kr 2012Y 21.75 21.57 -0.83 19 9.84 Jyske Bk JYSK (B) Dkr 2010Y 16.39 14.60 -10.92 6 16.54 Jyske Bk JYSK (B) Dkr 2011Y 24.25 23.54 -2.93 6 10.26 Jyske Bk JYSK (B) Dkr 2012Y 31.66 31.10 -1.77 5 7.77 Kantonalbank SGKN (B) SFr. 2011Y 31.78 31.91 0.41 5 14.76 Kantonalbank SGKN (B) SFr. 2012Y 34.70 34.56 -0.40 5 13.63 KBC Group NV KBC (B) € 2011Y 4.97 4.85 -2.41 19 6.23 KBC Group NV KBC (B) € 2012Y 5.82 5.66 -2.75 18 5.34 Linedata Services LIN (FT) € 2010Y 1.13 1.18 4.42 3 10.85 Linedata Services LIN (FT) € 2011Y 1.19 1.22 2.52 3 10.49 Linedata Services LIN (FT) € 2012Y 1.37 1.35 -1.46 3 9.48 Nordea NDA (B) kr 2011Y 6.74 6.72 -0.30 26 10.83 Nordea NDA (B) kr 2012Y 7.52 7.51 -0.13 26 9.69 Novae Group NVA (I) £ 2011Y 0.55 0.56 1.82 7 6.45 Pohjola Bank Plc POH1S (B) € 2011Y 0.92 0.93 1.09 8 10.34 Pohjola Bank Plc POH1S (B) € 2012Y 1.03 1.05 1.94 7 9.16 Sampo SAMAS (I) € 2011Y 2.13 2.20 3.29 21 10.18 Sampo SAMAS (I) € 2012Y 2.30 2.36 2.61 20 9.49 Sberbank SBER03 (B) RUB 2011Y 12.15 12.14 -0.08 16 7.93 SimCorp SIM (FT) Dkr 2012Y 66.71 66.72 0.01 5 13.04 SNS Reaal NV SR (B) € 2010Y 0.30 0.23 -23.33 10 15.73 SNS Reaal NV SR (B) € 2011Y 0.59 0.58 -1.69 9 6.24 Societe Generale GLE (B) € 2010Y 5.12 5.13 0.20 30 9.27 Societe Generale GLE (B) € 2011Y 5.97 6.06 1.51 29 7.85 Societe Generale GLE (B) € 2012Y 7.33 7.31 -0.27 25 6.51 Spar Nord Bank A/S SPNO (B) Dkr 2011Y 8.24 7.77 -5.70 2 7.27 Spar Nord Bank A/S SPNO (B) Dkr 2012Y 10.80 10.52 -2.59 2 5.37 Sparebanken Nord NONG (SB) NKr 2011Y 14.33 14.21 -0.84 7 8.90 Sparebanken Nord NONG (SB) NKr 2012Y 15.43 15.34 -0.58 6 8.25 Std Chartered Plc STAN (B) £ 2011Y 1.30 1.31 0.77 24 12.53

FactSet Mean Estimate Changes continued Ticker FactSet Mean EPS Est. # of Price/Est. Company (Type) Currency Period From To % Ests. EPS (x) Swedbank SWED.A (B) kr 2011Y 9.90 9.99 0.91 21 10.42 Swedbank SWED.A (B) kr 2012Y 10.54 10.58 0.38 20 9.84 Temenos Group TEMN (FT) SFr. 2011Y 1.76 1.77 0.57 17 20.85 Temenos Group TEMN (FT) SFr. 2012Y 2.03 2.06 1.48 14 17.91 Tryg A/S TRYG (I) Dkr 2011Y 24.79 24.29 -2.02 14 11.99 Tryg A/S TRYG (I) Dkr 2012Y 28.93 28.85 -0.28 14 10.10 UBS AG UBSN (B) SFr. 2011Y 1.87 1.86 -0.53 34 9.89 UBS AG UBSN (B) SFr. 2012Y 2.10 2.09 -0.48 31 8.80 Vozrozhdenie Bank VZRZ (B) RUB 2011Y 119.85 119.61 -0.20 13 11.10 Vozrozhdenie Bank VZRZ (B) RUB 2012Y 183.46 183.04 -0.23 11 7.26 Yapi Kredi Bank YKBNK (B) TL 2010Y 0.51 0.50 -1.96 18 9.72 Zurich Financial ZURN (I) SFr. 2011Y 28.23 28.67 1.56 31 9.23 Zurich Financial ZURN (I) SFr. 2012Y 30.28 30.45 0.56 26 8.69

Revision Key Below 5% increase Below 5% decrease 5% or more increase 5% or more decrease FactSet consensus data as of Feb 10, 11.

FactSet Mean Price Target Changes Ticker FactSet Mean Price Target # of Company (Type) Currency From To % Ests. Akbank TAS AKBNK (B) TL 8.43 8.37 -0.61 20 Assicurazioni G (I) € 16.66 16.69 0.20 24 Asya Katilim ASYAB (B) TL 3.46 3.47 0.29 14 Azimut Holding AZM (AM) € 8.95 8.96 0.04 12 Barclays Plc BARC (B) £ 3.58 3.57 -0.25 23 BBVA BBVA (B) € 9.93 9.95 0.22 31 Bk Saint Petersbrg BSPB (B) RUB 189.15 189.05 -0.06 12 BNP Paribas SA BNP (B) € 66.70 66.81 0.17 26 BRE Bank BRE (B) zl 305.85 307.01 0.38 13 Charlemagne Cap CCAP (AM) £ 0.19 0.19 0.52 1 CNP Assurances CNP (I) € 18.33 18.40 0.39 14 Credit Suisse Grp CSGN (B) SFr. 48.22 48.43 0.44 30 Danske Bank DANSKE (B) Dkr 169.71 169.52 -0.11 21 Deutsche Bank AG DBK (B) € 49.79 49.82 0.06 33 DnB NOR DNBNOR (B) NKr 92.00 92.19 0.21 21 EFG International EFGN (B) SFr. 15.28 15.74 2.96 6 Euler Hermes ELE (I) € 75.85 76.46 0.80 12 GlobeOp Finl Svcs GO. (FT) £ 4.15 4.16 0.22 3 GrenkeLeasing GLJ (SL) € 39.50 42.00 6.33 3 Handelsbanken SHB.A (B) kr 235.61 236.90 0.54 19 Hargreaves HL. (AM) £ 5.29 5.53 4.63 6 Helgeland HELG (SB) NKr 55.45 56.20 1.35 2 Henderson Group HGG (AM) £ 1.64 1.64 -0.06 14 HSBC Holdings HSBA (B) £ 7.79 7.80 0.21 26 Irish Life IL0 (I) € 2.00 1.80 -10.00 2 Jyske Bk JYSK (B) Dkr 264.67 269.80 1.94 5 Kantonalbank SGKN (B) SFr. 456.00 449.00 -1.54 5 KBC Group NV KBC (B) € 33.88 33.84 -0.14 19 Linedata Services LIN (FT) € 13.65 14.43 5.74 3 Man Group EMG (AM) £ 3.16 3.17 0.22 16 MCB Finance Group MCRB (SL) £ 0.48 0.48 -0.42 1 NEOVIA Financial NEO (FT) £ 0.80 0.80 0.13 2 Nordea NDA (B) kr 81.77 81.35 -0.51 23 Novae Group NVA (I) £ 3.99 4.10 2.71 6 OAO VTB Bank VTBR (B) RUB 0.10 0.10 2.02 16 PAO Bank Forum FORM (B) UAH 5.54 5.54 0.02 3 Pohjola Bank Plc POH1S (B) € 10.28 10.48 1.99 7 Rygge-Vaaler RVSBG (SB) NKr 131.87 134.10 1.69 3 Sampo SAMAS (I) € 23.32 23.61 1.27 21

FactSet Mean Price Target Changes continued Ticker FactSet Mean Price Target # of Company (Type) Currency From To % Ests.

Sandnes Sparebank SADG (SB) NKr 113.50 110.93 -2.26 3 Sberbank SBER03 (B) RUB 135.53 135.38 -0.11 19 SBM MORG (SB) NKr 227.67 233.53 2.58 6 SimCorp SIM (FT) Dkr 955.32 955.36 0.00 4 SNS Reaal NV SR (B) € 4.38 4.38 0.21 10 Societe Generale GLE (B) € 53.14 53.25 0.21 27 SpareBank 1 RING (SB) NKr 122.60 145.85 18.96 2 SpareBank 1 SMN MING (SB) NKr 63.83 64.71 1.39 7 SpareBank Buskerud SBVG (SB) NKr 145.53 145.27 -0.18 3 Sparebanken Nord NONG (SB) NKr 159.55 160.40 0.53 6 Sparebanken Øst SPOG (SB) NKr 42.87 44.13 2.95 3 Sparebanken Pluss PLUG (SB) NKr 169.50 169.83 0.20 3 SpareBanken Vest SVEG (SB) NKr 52.28 53.08 1.53 4 SR-Bank ROGG (SB) NKr 67.87 68.40 0.78 7 Std Chartered Plc STAN (B) £ 18.64 18.70 0.32 24 Storebrand ASA STB (I) NKr 52.92 54.09 2.22 11 Temenos Group TEMN (FT) SFr. 40.00 40.33 0.83 17 Totens Sparebank TOTG (SB) NKr 119.93 120.03 0.08 3 Tryg A/S TRYG (I) Dkr 322.08 325.46 1.05 13 Türk Vakiflar Bk VAKBN (B) TL 4.81 4.80 -0.23 18 Türkiye Garanti Bk GARAN (B) TL 9.10 9.07 -0.33 20 Türkiye Halk Banka HALKB (B) TL 16.67 16.62 -0.34 18 Türkiye Is Bankasi ISCTR (B) TL 6.76 6.73 -0.52 19 UBS AG UBSN (B) SFr. 19.92 19.72 -1.02 33 Ukrsotsbank USCB (B) UAH 0.87 0.87 0.11 4 Vontobel Hollding VONN (AM) SFr. 34.94 34.12 -2.36 6 Vozrozhdenie Bank VZRZ (B) RUB 1,505.50 1,504.10 -0.09 14 Wiener Stadtische VIG (I) € 44.72 44.71 -0.02 12 Yapi Kredi Bank YKBNK (B) TL 6.01 5.97 -0.75 20 Zurich Financial ZURN (I) SFr. 281.18 281.24 0.02 30

Revision Key Below 5% increase Below 5% decrease 5% or more increase 5% or more decrease FactSet consensus data as of Feb 10, 11.

Industry Conferences For the period Feb 14, 11 to Mar 16, 11 Name Dates Location Phone Cablehttp://www.cablecongress.com/ Europe Cable Congress 11 Feb 15, 11-Feb 17, 11 Zurich, Switzerland 44 (0)20 7017 5827 IQPChttp://www.fintransformation.co.uk/Event.aspx?id=363044 Finance Transformation 2011 Feb 15, 11-Feb 17, 11 London, United Kingdom (800) 882-8684 ITAS 2011http://www.icbi-events.com/itas/default.php Feb 15, 11-Feb 18, 11 Luxembourg, Luxembourg 44 (0)20 7017 7200 Fleminghttp://www.flemingeurope.com/financial-conferences/europe/4th-annual-bancassurance-forum Europe 4th Annual Bancassurance Forum Feb 16, 11-Feb 17, 11 Rome, Italy 421 257 272 126 Searchhttp://www.searchenginestrategies.com/london/ Engine Strategies 2011 Conference & Expo Feb 21, 11-Feb 25, 11 London, United Kingdom (800) 955-2719 Credithttps://www.credit-suisse.com/investment_banking/en/calendar/investment_banking_calendar.jsp Suisse Healthcare One-on-One Conference Mar 01, 11-Mar 03, 11 London, United Kingdom (212) 325-2000 EVCAhttp://www.evca.eu/investorsforum2011/home.html Investor’s Forum Mar 09, 11-Mar 10, 11 Geneva, Switzerland 32 2 715 00 20 Euromoneyhttp://www.euromoneyseminars.com/EventDetails/0/3363/European-High-Yield-Bond-Conference.html European High Yield Bond Conference Mar 09, 11-Mar 10, 11 London, United Kingdom 44 (0)20 7779 8120 Marketforcehttp://marketforce.eu.com/Conferences/rbe11/ Retail Banking in Europe Forum Mar 15, 11-Mar 16, 11 Amsterdam, Netherlands 44 (0)20 7760 8699 JPMorganhttp://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=12929714463 Russia Corporate Access Days 53&pagename=JPM_redesign%2FJPM_Content_C%2FGeneric_Detail_P Mar 16, 11-Marage_Template 17, 11 London, United Kingdom - To submit additions or corrections regarding industry conferences, please contact Dottie Risdon at +1.434.951.7477, or e-mail [email protected].

Stock Highlights Friday Past Week Price Price Company Ticker Curr Close Volume % Chng Company Ticker Curr Close Volume % Chng BEST PERFORMERS BY PRICE BEST PERFORMERS BY PRICE BANKS AND SAVINGS BANKS BANKS AND SAVINGS BANKS ATEbank SA ATE € 0.85 811,430 11.8 AB Bankas SNORAS SRS1L € 0.43 1,753,873 15.9 Hvidbjerg Bank A/S HVID Dkr 60.00 617 11.1 Slatinska banka dd SNBARA kn 129.50 5,228 12.1 Hellenic Postbank TT € 3.42 758,857 9.3 Allied Irish Banks AIB € 0.28 12,291,113 11.1M Attica Bk TATT € 1.11 163,978 7.8 Espírito Santo Grp ESFN € 14.28 937 9.8 Bank of Ireland BIR € 0.38 6,116,635 6.8 TSKB TSKB TL 2.82 18,195,831 8.0 Spar Bank Vest SPB Dkr 80.00 279 6.7 Salling Bank A/S SALB Dkr 347.00 212 7.1 Proton Bank PRO € 0.90 1,422,025 5.9 Nordea Bk Polska NDA zl 48.83 197 7.1 Nordfyns Bank A/S NRDF Dkr 370.00 840 5.7 DnB NOR DNBNOR NKr 85.30 36,738,058 6.6 Sberbank SBER03 RUB 101.04 317,066,200 4.9 ATEbank SA ATE € 0.85 1,953,360 6.3 DnB NOR DNBNOR NKr 85.30 10,010,200 4.2 Swedbank SWED.A kr 105.70 37,491,548 6.2 INSURANCE INSURANCE Vaudoise Assurance VAHN SFr. 289.75 4,275 6.9 Beazley Plc BEZ £ 1.34 10,981,653 13.9 FBD Holdings EG7 € 7.15 57,257 5.1 Chaucer Holdings CHU £ 0.59 12,984,252 11.8 Foyer FOY € 43.00 175 4.3 NÜRNBERGER NBG6 € 64.31 2,575 11.8 Irish Life IL0 € 0.97 253,926 4.3 Novae Group NVA £ 3.63 546,915 8.2 Legal & Genl Grp LGEN £ 1.23 35,057,040 3.3 Mannheimer AG MAV € 4.00 550 8.1 NÜRNBERGER NBG6 € 64.31 405 2.6 Bulstrad Insurance 4BI BGN 41.00 155 7.9 Flagstone Re Hldgs FSR $ 12.26 148,240 2.5 Vaudoise Assurance VAHN SFr. 289.75 9,863 7.8 Anadolu Sigorta ANSGR TL 1.40 2,919,824 2.2 Global Indem plc GBLI $ 20.97 90,824 7.8 Gunes Sigorta GUSGR TL 2.06 402,443 1.5 Irish Life IL0 € 0.97 1,911,519 7.4 ageas SA/NV AGS € 2.32 10,385,900 1.4 CBG Group CB. £ 0.26 17,092 6.1 OTHER FINANCIAL SERVICES OTHER FINANCIAL SERVICES Juragent JUT € 1.50 200 42.8 Blue Vision BLVIS Dkr 130.00 120 251.4 Driver & Bengsch D8B € 0.05 2,290 41.2 Juragent JUT € 1.50 1,400 42.8 Baydonhill BHL £ 0.18 14,900 16.7 PCFG PCF £ 0.07 1,103,961 18.7 Fiske FKE £ 0.71 185,038 10.1 Bankverein Werther BVW € 4.45 245 17.1 Shore Capital Grp SGR £ 0.30 1,602,987 9.3 Baydonhill BHL £ 0.18 22,094 16.7 Ambrian Capital AMBR £ 0.32 1,025,912 7.7 Ambrian Capital AMBR £ 0.32 2,772,970 11.5 Parkmead Group PMG £ 0.26 3,306,172 7.2 Hellenic Exchanges EXAE € 6.50 2,557,072 11.5 Charlemagne Cap CCAP £ 0.21 55,904 5.1 Renta 4 R4 € 5.51 188,032 10.6 Fidessa Group FDSA £ 17.00 14,106 4.0 Fiske FKE £ 0.71 187,038 10.1 Evolution Group EVG £ 0.70 227,195 3.7 ALBIS Leasing ALG € 0.55 107,356 10.0 Note: Institutions ranked in the above tables must be traded on an exchange SNL covers and MCompany is the target of a pending merger. have a daily volume greater than 100 shares. Note: Institutions ranked in the above tables must be traded on an exchange SNL covers and have a daily volume greater than 100 shares.

Stock Highlights continued Friday Past Week Price Price Company Ticker Curr Close Volume % Chng Company Ticker Curr Close Volume % Chng WORST PERFORMERS BY PRICE WORST PERFORMERS BY PRICE BANKS AND SAVINGS BANKS BANKS AND SAVINGS BANKS T Bank SA TBANK € 0.26 351,507 -10.3 Max Bank A/S MAX Dkr 18.40 98,429 -25.8 Sparekassen Hvetbo HVETBO Dkr 120.00 247 -9.1 Østjydsk Bank OJBA Dkr 300.00 5,739 -18.5 Max Bank A/S MAX Dkr 18.40 27,980 -8.0 Vestjysk Bank A/S VJBA Dkr 55.50 150,622 -16.5 Totalbanken A/S TOTA Dkr 95.00 837 -4.5 Sparekassen Hvetbo HVETBO Dkr 120.00 497 -14.3 SpareBank 1 NTSG NKr 95.00 5,983 -4.0 T Bank SA TBANK € 0.26 1,734,340 -13.3 Østjydsk Bank OJBA Dkr 300.00 829 -3.2 Danske Bank DANSKE Dkr 125.20 25,010,182 -13.2M Alpha Bank AE ALPHA € 4.36 2,347,717 -2.9 Marfin Egnatia Bk EGNAK € 0.65 13,599 -12.2 Fortis Bank FORTS TL 2.02 616,093 -2.9 Aarhus Lokalbank AARHUS Dkr 17.80 48,390 -11.9 CA Touraine Poitou CRTO € 59.20 440 -2.8 Proton Bank PRO € 0.90 6,125,343 -11.8 Klepp Sparebank KLEG NKr 77.00 2,265 -2.5 DIBA Bank A/S DIBA Dkr 53.00 12,523 -11.7 INSURANCE INSURANCE Palace Capital Plc PCA £ 0.05 50,000 -4.8 Alm Brand ALMB Dkr 10.00 3,237,920 -21.9 Premafin Finanziar PF € 0.71 177,694 -3.8 Gunes Sigorta GUSGR TL 2.06 5,861,499 -7.6 Insplanet IPL kr 10.65 10,150 -3.2 Palace Capital Plc PCA £ 0.05 51,000 -4.8 Chaucer Holdings CHU £ 0.59 1,764,203 -1.7 April Group APR € 22.66 140,467 -4.0 Fondiaria-Sai FSA € 6.85 1,287,649 -1.7 Grupo Catalana GCO € 15.61 804,225 -2.4 Milano Assicurzion MI € 1.21 934,246 -1.6 Mercurius MR8 € 4.70 8,753 -2.1 ING Groep NV INGA € 8.93 27,606,640 -1.3 UNIQA UQA € 16.08 12,350 -2.0 Società Cattolica CASS € 19.46 55,495 -1.2 Unipol Gruppo UNI € 0.52 29,189,989 -1.7 April Group APR € 22.66 13,336 -1.1 Topdanmark TOP Dkr 779.50 171,990 -1.6 SCOR SCR € 20.82 303,275 -1.1 Società Cattolica CASS € 19.46 378,174 -1.6 OTHER FINANCIAL SERVICES OTHER FINANCIAL SERVICES Daniel Stewart DAN £ 0.02 7,974,156 -6.1 1.618 STRICT STRIB kr 0.19 140,000 -26.9 NewCap Holding NEWCAP Dkr 0.46 4,900 -4.2 Värmlands Finans VFSB kr 3.21 39,543 -13.2 quirin bank AG QB7 € 2.10 4,515 -4.1 Marechale Capital MAC £ 0.02 121,212 -11.3 Is Finansal ISFIN TL 1.63 4,984,225 -3.6 Worldspreads Group 36W € 0.50 72,952 -10.7 PLUS Markets Group PMK £ 0.02 15,000 -3.3 C-QUADRAT Invt AG C8I € 26.01 1,920 -10.3 NEOVIA Financial NEO £ 0.62 506,294 -3.1 H&T Group HAT £ 2.95 241,553 -8.7 Davenham Group DAV £ 0.04 67,905 -3.1 Impax Asset Mngmnt IPX £ 0.69 149,824 -8.1 F&C Asset Mgmt Plc FCAM £ 0.87 776,441 -2.9 Is Finansal ISFIN TL 1.63 14,508,568 -7.4 Alm. Brand ALMBFB Dkr 85.50 2,261 -2.8 MCB Finance Group MCRB £ 0.24 110,538 -6.0 Paypoint PAY £ 3.41 3,131 -2.2 Davenham Group DAV £ 0.04 1,313,258 -5.9 Note: Institutions ranked in the above tables must be traded on an exchange SNL covers and MCompany is the target of a pending merger. have a daily volume greater than 100 shares. Note: Institutions ranked in the above tables must be traded on an exchange SNL covers and have a daily volume greater than 100 shares.

Stock Highlights continued Friday Past Week Price Volume as Price Volume as Company Ticker Curr % Chng Volume % of Avg Company Ticker Curr % Chng Volume % of Avg VOLUME HIGHLIGHTS VOLUME HIGHLIGHTS BANKS AND SAVINGS BANKS BANKS AND SAVINGS BANKS SpareBank 1 NTSG NKr -4.04 5,983 1,661.9 Norresundby Bank NRSU Dkr -1.40 80,376 1,605.9 Nordfyns Bank A/S NRDF Dkr 5.71 840 1,448.3 Vestfyns Bank A/S VEFY Dkr -5.80 2,093 889.4 Klepp Sparebank KLEG NKr -2.53 2,265 1,039.0 Kredyt Bank KRB zl 0.96 3,911,796 865.4 Max Bank A/S MAX Dkr -8.00 27,980 700.6 Aarhus Lokalbank AARHUS Dkr -11.88 48,390 786.2 Sparebanken Nord NONG NKr 1.19 87,063 600.0 Aurskog Sparebank AURG NKr 3.68 7,961 612.3 Sparekassen Hvetbo HVETBO Dkr -9.09 247 588.1 Klepp Sparebank KLEG NKr -5.52 6,597 605.1 Bank of Moscow MMBM RUB 4.10 13,275 491.1 Nordfyns Bank A/S NRDF Dkr -3.90 1,659 570.7 Banco Popolare SC BP € -0.19 43,652,180 489.2 Østjydsk Bank OJBA Dkr -18.48 5,739 565.0 PBZ PBZRA kn -1.14 886 454.4 BACB 5BN BGN 1.64 37,640 544.7 Lollands Bank A/S LOLB Dkr -0.29 1,324 442.8 Jadranska banka dd JDBARA kn 0.73 247 544.4 INSURANCE INSURANCE Alm Brand ALMB Dkr 0.00 644,108 1,080.1 Alm Brand ALMB Dkr -21.88 3,237,920 1,086.0 Novae Group NVA £ 0.35 191,635 592.4 WürttLeben WLV2 € 1.32 37,506 465.6 Vaudoise Assurance VAHN SFr. 6.92 4,275 399.9 Vittoria VAS € 2.05 487,285 341.5 Personal Group PGH £ 0.19 30,327 279.9 Novae Group NVA £ 8.21 546,915 338.2 Beazley Plc BEZ £ -0.45 2,090,881 211.0 Hansard Global HSD £ -0.59 1,056,597 333.4 Chaucer Holdings CHU £ -1.67 1,764,203 197.2 Chaucer Holdings CHU £ 11.85 12,984,252 290.3 NÜRNBERGER NBG6 € 2.57 405 177.6 Abbey Protection ABB £ -0.92 303,876 261.6 Legal & Genl Grp LGEN £ 3.28 35,057,040 172.8 NÜRNBERGER NBG6 € 11.84 2,575 225.9 Palace Capital Plc PCA £ -4.76 50,000 168.8 Beazley Plc BEZ £ 13.91 10,981,653 221.6 Willis Grp Hldgs WSH $ 1.21 1,261,804 163.2 Bulstrad Insurance 4BI BGN 7.89 155 221.4 OTHER FINANCIAL SERVICES OTHER FINANCIAL SERVICES Fiske FKE £ 10.08 185,038 8,538.9 Bankverein Werther BVW € 17.11 245 4,900.0 UCA UCA € 0.00 2,600 4,561.4 Daniel Stewart DAN £ 2.22 132,427,257 2,363.9 Shore Capital Grp SGR £ 9.26 1,602,987 1,843.7 Fiske FKE £ 10.08 187,038 1,726.2 Banque Profil BPDG SFr. -0.92 2,730 853.1 UCA UCA € 3.13 2,820 989.5 Daniel Stewart DAN £ -6.12 7,974,156 711.7 Worldspreads Group 36W € -10.71 72,952 899.0 Brooks MacDonald BRK £ -0.94 131,304 700.0 Syndicate SAM £ 2.58 177,414,190 616.6 Crosby Asset Mgt CSB £ 0.00 2,140,985 540.8 Arden Partners ARDN £ 0.00 591,227 603.8 Astaire Group ASTR £ 0.00 1,852,656 524.2 PCFG PCF £ 18.67 1,103,961 410.6 Ambrian Capital AMBR £ 7.69 1,025,912 470.6 London Stock Exch LSE £ 6.32 17,140,652 378.0 Baydonhill BHL £ 16.67 14,900 427.3 Brooks MacDonald BRK £ 0.96 348,231 371.3 Note: Institutions ranked in the above tables must be traded on an exchange SNL covers and Note: Institutions ranked in the above tables must be traded on an exchange SNL covers and have a daily volume greater than 100 shares. have a daily volume greater than 100 shares.

Daily Index Values

Percentage Change Percentage Change Value 1 Day 1 Week YTD 52 Week Value 1 Day 1 Week YTD 52 Week STOXX Europe 600 288.0 0.42 0.73 4.42 19.49 DJIA 12,273.3 0.36 1.50 6.01 21.53 EURO STOXX 293.6 0.12 0.96 6.96 16.41 S&P 500 1,329.1 0.55 1.39 5.69 23.58 STOXX Eastern Europe 300 171.6 1.51 -2.14 3.38 23.76 Hang Seng 22,828.9 0.53 -4.52 -0.90 12.63 FTSE 100 6,062.9 0.71 1.09 2.76 17.90 Nikkei 225 NA NA NA NA NA DAX 7,371.2 0.42 2.15 6.61 34.01 STOXX Europe 600 Bks 219.0 0.42 0.07 11.58 11.57 CAC 40 4,101.3 0.15 1.34 7.79 13.95 EURO STOXX Bks 186.5 0.63 -0.04 15.94 0.61 IBEX 35 10,803.6 0.11 -0.47 9.58 5.66 STOXX Eastern Europe 300 Bks 133.0 1.64 -2.29 0.86 8.84 FTSE MIB 22,695.2 0.44 0.34 12.50 7.89

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