PDF Interim Report on Operations

THE BANCA CARIGE GROUP

Fondazione CR CE Participations Generali Other Genova e Groupe BPCE Assicurazioni shareholders Imperia

44.06% 14.98% 2.97% 37.99% BANCA CARIGE S.p.A. - Cassa di Risparmio di Genova e Imperia

90.00% Banca Cesare Ponti S.p.A.

90.00% Cassa di Risparmio di Carrara S.p.A. Carige Vita Nuova S.p.A. 100.00%

60.00% Banca del Monte di Lucca S.p.A. Carige Assicurazioni S.p.A. 98.40%

1.16% held through own shares. 95.90% Cassa di Risparmio di Savona S.p.A.

20.00 % 76.95% Centro Fiduciario C.F. S.p.A. Dafne Immobiliare S.r.l. 100.00%

100.00% Columbus Carige Immobiliare S.p.A. 100.00% I.H. Roma S.r.l.

Immobiliare Carisa S.r.l. 100.00% 57.50% Assi90 S.r.l. 37.50%

100.00% Creditis Servizi Finanziari S.p.A. 0.50% 99.50% Carige Asset Management SGR S.p.A.

100.00% Argo Finance One S.r.l.

100.00% Priamar Finance S.r.l.

60.00% Argo Mortgage S.r.l.

60.00% Argo Mortgage 2 S.r.l.

60.00% Carige Covered Bond S.r.l. Banca Carige Group

Banking activities Trustee activities Insurance activities Instrumental activities Financial activities

BANCA CARIGE GROUP INTERIM REPORT ON OPERATIONS AS AT 31/3/2010

CONTENTS

CONSOLIDATED FINANCIAL HIGHLIGHTS 4

MANAGEMENT OF THE PARENT BANK 5

INTERIM REPORT ON OPERATIONS 6 - The real and monetary situation 7 - Strategy 8 - Business performance 9 - Significant events of the first three months 2010 9 - Risk management 10 - Significant events occurred after 31 March 2010 and outlook for the current year 10 - Transactions with related parties 11

CONSOLIDATED INTERIM FINANCIAL STATEMENTS 12 Consolidated financial statements 13 - Consolidated balance sheet 14 - Consolidated income statement 15 - Statement of consolidated comprehensive income 16 - Statement of changes in consolidated shareholders’ equity 17 - Consolidated cash flow statement 20 Explanatory notes 21 - Accounting policies 21 - Area and methods of consolidation 23 - Intermediation activities 26 - Economic results 43 - Insurance activities 48 - Transactions with related parties 49 - Equity investments 50 - Own shares, cash flow statement and shareholders’ equity 50 - Resource management 51 - Risk management 53 - Segment reporting 59 - The Parent Bank: financial statements and explanatory notes 65 - Bank subsidiaries 91 - Insurance subsidiaries 96 - Financial subsidiaries 98 - The other main subsidiaries 101

DECLARATION OF THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S 102 FINANCIAL REPORTS PURSUANT TO PARAGRAPH 2 OF ART. 154-bis OF THE CONSOLIDATED LAW ON FINANCE

REMARKS The following signs are used by convention in the tables: - when data are nought … when data are not significant

CONSOLIDATED FINANCIAL HIGHLIGHTS

Situation as at Change % 31/3/2010 31/12/2009 31/3/2009 3/10 3/10 12/09 3/09 BALANCE SHEET (1) Total assets 37,288,763 36,299,374 32,093,305 2.7 16.2 Funding 26,756,889 26,355,057 23,027,062 1.5 16.2 - Direct Deposits (a) 25,477,435 25,695,779 22,445,605 -0.8 13.5 * Amounts owed to customers 14,860,166 15,061,675 12,194,461 -1.3 21.9 * Securities in issue 9,929,162 10,019,877 9,667,633 -0.9 2.7 * Liabilities at fair value (2) 688,107 614,227 583,511 12.0 17.9 - Amounts owed to banks 1,279,454 659,278 581,457 94.1 … Indirect deposits (b) 21,078,266 21,225,626 21,095,397 -0.7 -0.1 - Assets under management (3) 9,180,272 8,701,235 7,743,235 5.5 18.6 - Assets in custody (3) 11,897,994 12,524,391 13,352,163 -5.0 -10.9 Financial Intermediation Activities (FIA) (a+b) 46,555,701 46,921,405 43,541,002 -0.8 6.9 Investments 33,367,968 32,387,413 27,899,432 3.0 19.6 - Loans to customers (4) 22,865,826 23,116,726 20,751,444 -1.1 10.2 - Loans to banks (4) 2,375,612 1,074,538 1,366,958 … 73.8 - Securities portfolio 8,126,530 8,196,149 5,781,030 -0.8 40.6 Capital and reserves 3,805,395 3,605,708 3,472,271 5.5 9.6

Situation as at Change % 31/3/2010 31/12/2009 31/3/2009 3/10 3/10 12/09 3/09 INCOME STATEMENT (1) Gross operating income 252,941 1,119,487 266,319 -5.0 Net income from financial and insurance management 213,012 942,611 231,077 -7.8 Operating income from ordinary activities before taxes 56,419 313,113 74,961 -24.7 Profit for the period 32,093 205,381 45,123 -28.9

RESOURCES (5) Number of branches 643 643 643 - - Insurance agencies 414 394 380 5.1 8.9 Number of bank employees 5,443 5,500 5,492 -1.0 -0.9 Number of bank and insurance employees 5,895 5,906 5,880 -0.2 0.3

FINANCIAL RATIOS Operating costs Gross operating income 61.91% 56.88% 58.61% Operating profit from ordinary activities before taxes /Capital and reserves 1.48% 8.68% 2.16% ROE 0.84% 5.70% 1.30% ROE (6) 1.05% 7.17% 1.60% ROAE (7) 0.88% 5.92% 1.33% ROAE (6) (7) 1.09% 7.40% 3.20% Earnings per share (in euro) - base 0.014 0.113 0.023 - diluted 0.014 0.113 0.022 RISK ASSETS AND REGULATORY RATIOS (8) Total Risk-Weighted Assets (1) 20,037,588 19,812,888 19,316,375 1.1 3.7 Core Tier 1/Total Risk-Weighted Assets 6.98% 7.06% 6.80% Tier 1 capital / RWA 7.78% 7.87% 7.63% Regulatory capital including Tier 3 capital/Total weighted assets 9.96% 10.03% 9.80% (1) Figures in thousands of euro (2) Carige Vita Nuova liabilities, designated at fair value and relating to products for which investment risk is borne by the insured, are not included in this table.

(3) Financial investment processes related to part of the securities portfolio of the Group insurance companies have been reviewed during the year . In compliance with this review the investment management agreements signed between the Parent Bank and the insurance subsidiaries have been cancelled and replaced by an advisory agreement, appointed to Carige AM SGR. In light of this, amounts pertaining to the insurance companies have been reclassified from assets under management to assets in custody. The aggregates for the previous periods have been adequately reclassified to allow a homogeneous comparison as at 31/12/2009.

(4) Gross of value adjustments and net of debt securities classified as L&R. (5) Statistics of the end of period. (6) Net of the AFS reserve established against the revaluation of the equity investment in the Bank of Italy. (7) Net profit on average shareholders' equity (Return On Average Equity). (8) Figures as at 31/3/2010 and 31/3/2009 result from accounting and management estimates, as the official consolidated figures (Information form "1") are provided only every six months (in June and December).

MANAGEMENT OF THE PARENT BANK

BOARD OF GENERAL MANAGEMENT BOARD OF STATUTORY DIRECTORS AUDITORS

CHAIRMAN GENERAL MANAGER CHAIRMAN Giovanni Berneschi* Alfredo Sanguinetto Andrea Traverso

DEPUTY CHAIRMAN DEPUTY GENERAL STANDING AUDITORS Alessandro Scajola * MANAGER Massimo Scotton (COMMERCIAL) Antonio Semeria DIRECTORS Carlo Arzani (1) Piergiorgio Alberti * SUBSTITUTE AUDITORS Piero Guido Alpa DEPUTY GENERAL Adriano Lunardi Luca Bonsignore MANAGER Luigi Sardano Cesare Castelbarco Albani (ADMINISTRATION AND Remo Angelo Checconi * RESOURCES) AUDIT FIRM Bruno Cordazzo Giacomo Ottonello Deloitte & Touche SpA Bruno Deletré Gabriele Galateri di Genola DEPUTY GENERAL Luigi Gastaldi * MANAGER Pietro Isnardi (CREDIT AND WEALTH Paul Marie Le Bihan MANAGEMENT) Alain Jean Pierre Lemaire Mario Cavanna Paolo Cesare Odone * Renata Oliveri * DEPUTY GENERAL Guido Pescione MANAGER Mario Venturino (GOVERNANCE AND CONTROL) Ennio La Monica

*Member of the Executive Committee

The Board of Directors was appointed by the Ordinary Shareholders’ Meeting of 29 April 2009 for the financial years 2009-2010-2011. The Ordinary Shareholders’ Meeting of 29 April 2010 appointed Mr. Bruno Deletré and Mr. Paul Marie Le Bihan – already co-opted by the Board of Directors on 14 December 2006 and 22 February 2010 to replace the outgoing Mr. Jean-Marie Paintendre and Mr. Jean-Jacques Bonnaud – as members of the Board of Directors of CARIGE S.p.A., with the same expiry of term in office as the other Board members. The Executive Committee was appointed by the Board of Directors on 11 May 2009 with term of office up to 31 October 2010. On 21 December 2009, the Board of Directors appointed Deputy General Manager for Governance and Control, Mr. Ennio La Monica, as the General Manager starting from 1 May 2010 and, at the same time, resolved to extend the term of office of Mr. Alfredo Sanguinetto until his replacement takes office. The Board of Statutory Auditors was appointed by the Ordinary Shareholders’ Meeting of 29 April 2008 for the financial years 2008-2009- 2010. The mandate to the Audit Firm was granted by the Ordinary Shareholders’ Meeting of 20 April 2006 for the financial years 2006-2007-2008- 2009-2010-2011. On 11 May 2009, in compliance with the provisions of art. 154 bis, paragraph 1 of Legislative Decree 58/1998 and art. 31 of the Articles of Association, the Board of Directors resolved the appointment, effective from 12 May 2009, of Daria Bagnasco, Planning and Accounting Head Office Manager of Banca Carige S.p.A., as the Manager responsible for preparing the company’s financial reports, having verified the requirements of integrity and experience.

(1) With the role of Substitute Deputy General Manager.

INTERIM REPORT ON OPERATIONS

Also India is seeing their economy grow at a THE REAL AND MONETARY good rate, which led to rising inflation, enough SITUATION so that the central bank tightened monetary policies in January. The economy of the European Union (EU)

has mixed signs of recovery, with internal de- In 2009, following the financial crisis, the inter- mand still highly dependent on expansion national GDP aggregates recorded their lowest measures through economic policy. However, rates in the last 40 years. The macroeconomic after ending 2009 with a 4% fall in GDP, in the situation in the first months of 2010 saw a slight first quarter of 2010 the Eurozone saw industrial recovery in economic activity with the support of production grow (+3.9% in February), especially the exceptional interventions of economic policy. in Germany (+5.4%), and an increase in busi- This recovery was quicker in emerging countries ness confidence indices. New manufacture or- involved only indirectly in the issues related to ders also rose in January (+10%). Retail sales the financial crisis and facing lower indebted- are still falling (-0.9% in February) and employ- ness, whereas the recovery of countries with ad- ment is still in a critical situation (10% unem- vanced economies, at the centre of the crisis, ployment in February in the EU). Consumer was more uncertain. The world GDP for 2010 is prices in March, according to the indications of forecast to increase by 4.1% (-0.2% in 2009), Eurostat, recorded 1.4% yearly growth (+1.2% while a higher “comeback” is expected for inter- in Germany, +1.7% in France), which reflects national trade (+7.5% in 2010, -10.7% in rising inflation after period of deflation in the 2009). summer of 2009. After the public debt crisis in Greece, the minis- Italy maintains its negative gap compared to ters of finance in the Eurozone granted a bailout the EU average. Recovery, though slow and un- loan of €110 billion over three years, €80 mil- certain, was triggered by exports, stock and in- lion of which from the European Union and 30 vestments in machinery, plants and means of million from FMI. The share of the loan from transport, showing a considerable rise com- each country depends on their share in the ECB. pared to the critical phase of the crisis. Certain In the first three months of 2010, the United signs of recovery are also seen in household States, after ending 2009 with a 2.4% drop in spending, while the fall in construction invest- GDP, saw a rise in industrial production and ments continues. business confidence indices, which, however, At the beginning of 2010 there was a recovery took place in a labour market still undergoing in industrial production (+1.1% in the first two difficulty despite government incentives and pub- months, +2.7% in the month of February), after lic investment plans. Even if there was a steady a 5.1% drop in 2009. rise in employment (+0.4%), the unemployment The rise in industrial production basically reflects rate is still very high (9.7%). After reaching 4.3% trends in non-durables (+2.4%) and intermedi- in 2009, household saving propensity fell by 1% ate goods (+3.3%), while the negative trend in in the first months of 2010. The trade deficit, af- durable goods continues (-2.1%) and producer ter falling to 2.9% of GDP in 2009 (4.9% in durables (-1.6%). 2008), rose again at the beginning of 2010. In the first two months of 2010 there were posi- Housing prices started falling again after seeing tive signs from the rise in total sales and orders a recovery in mid 2009. (+4.7% and +3.4%, respectively), especially In 2009, emerging countries showed only from the foreign market, while household con- slower growth rates and not an actual recession, sumption is penalized by slow internal demand, whereas in 2010, on the whole, they are again which is unlikely to benefit from the support of undergoing rapid development, which contrib- the public sector in light of the deficit accumu- utes to rising prices of commodities on interna- lated during the recession. Retail sales fell by tional markets. In particular, China and India 1.4% in the first two months of 2010, above-all implemented economic policies for major ex- in small-scale distribution (-2.2%), while large- pansion interventions to support internal de- scale distribution remained steady (-0.2%). The mand. In the first quarter of 2010, China’s GDP fall was more visible in foodstuffs (-2.3%). rose by 11.9%, a considerable increase over Business confidence indices are improving and 2009. Employment and salary levels are in- in line with Eurozone trends, while consumer creasing while delays in demand from commer- confidence dropped slightly in March. cial partners had a negative impact on exports.

7 The labour market continues to worsen, espe- 11% in March while foreign deposits of Italian cially in the industrial sector: in February there banks fell (-11.3% in February). was a 1.7% decrease in employment and the In the first quarter of 2010, bank loans unemployment rate rose to 8.5% (7.3% in Feb- showed the first signs of recovery from the slow- ruary 2009). down seen in 2009. In March, private loans Inflation rose (+1.4% in March), sustained by rose by 1.9% (+1.7% in December 2009). the energy component, while core inflation (net Trends in household and non-financial business of foodstuffs and energy) remained substantially credit are slightly worse (+1.2%; +0.5% in De- stable. cember 2009), effected by the decrease in busi- In terms of foreign trade, on the basis of the ness loans against further growth in household sudden recovery in international trade, in the loans, especially for the purchase of real-estate. January-February period, exports recovered In terms of maturities, short-term loans fell by - (+4.5% over the same period in 2009) as well 5.9% whereas medium/long-term loans grew by as imports (+6.6%), with a negative trade bal- +4.2%. Net bad loans, though steadily rising ance of €5.7 billion, due entirely to the deficit (+52.2% in February), decreased in the first two with non-EU countries. months of 2010, with a bad loan/lending ratio Public finance improved over 2009: the cu- of 2.02% to 1.92% (1.28% in February 2009). mulative cash requirements of the government Bank interest rates continued to fall. Per- sector in the first three months of 2010 formance of new transactions is lower in Italy amounted to about €26.9 billion, less than the than the Eurozone. The average rate on loans to €30.1 billion of the first three months of 2009. households and non-financial companies at Monetary policy continued to follow the ob- March stood at 3.65% (3.78% at the end of jective of creating and maintaining favourable 2009) and the rate on deposits at 0.62% credit conditions. In the United States the FED (0.68% at December 2009), with a slight reduc- maintained interest rates at 0-0.25% in the first tion in spreads. quarter. Despite new rises in inflation, the ECB kept the policy rate at its historic minimum of 1%, affirming the need of Eurozone govern- ments to reduce budget imbalances and correct excessive deficits. STRATEGY Market rates still showed a decreasing trend: Euribor 3 months dropped from 0.71% in De- cember to 0.65% in March, the Euribor 6 The strategic goal of the Group, in line with the months from 1% to 0.95% and the T-bill yield path started at the beginning of the 1990s, is from 3.21% to 3.14%. Government bond per- the creation of value for all stakeholders in the formance fluctuated even more: BOT (treasury medium/long-term, with a particular focus on bills) and CCT (treasury credit certificates) fell the development of relations with customers and while CTZ (zero coupon treasury bills) and BTP balancing dimensional growth, key requirements (long-term treasury bonds) rose. for maintaining a significant role in the domestic The currency exchange market was char- banking system. acterised by progressive weakening of the Euro The Carige Group confirmed the mission of against the US Dollar: from 1.44 at the end of consolidating its position as a banking, financial 2009, the Euro fell to 1.35 in March 2010 and and welfare and insurance group at national reached 1.26 on 6 May, its lowest level since level: October 2008. - with a widespread presence in Italy, signifi- With regard to banking intermediation, direct cant coverage in certain areas of the country deposits were lower (-6.8%, compared to a and the core centre in Liguria, where it is rise of 9.2% in December 2009), due to the characterised by a particular focus on the de- slowdown in bonds (+3.7%; +11.2% at De- velopment of relations with local entities cember 2009). Deposits from resident customers (multilocalism), rose steadily (+9.1%; +7.8% at December - focused on the family, small and medium 2009), mainly because of the uncertainty of sized enterprise, craftsmen, merchant seg- savers in highly volatile financial markets, ments and local public entities, thereby leading them to choose liquid instru- - able to distinguish itself for the quality of ser- ments. Repurchase agreements rose by nearly vice offered through an integrated mul- tichannel approach and a progressive quali-

8 tative development of resources and struc- − a growth in traded volumes, maintaining an tures, also leveraging on the widest use of adequate level of capitalisation; technology. − risk protection and management. In line with the strategic goal and in order to fully realise this mission, strategies have been The strategy pursued by the Group and the re- developed for: sults achieved were assessed favourably in the − an increased level of productivity, efficiency period by international rating agencies. The and profitability; most recent ratings attributed to the Group are shown in the table below:

BANCA CARIGE RATINGS

Date short-term long-term BFSR (1) (2) Individual (2) Support (3) Fitch December 2008 F1 A - B/C 3 Moody's November 2009 (4) P-1 A2C-- - Standard & Poor's April 2010 A2 A-- - -

(1) Bank Financial Strength Ratings. (2) BFS ratings express the intrinsic strength and solidity of a bank, as well as its financial reliability given the bank's assets. Ratings range from A to E. (3) Support ratings indicate the likelihood of the Government or other public entity, or shareholders, stepping in to support the bank in the event of crisis. Ratings range from 1 to 5. (4) Date relative to the last credit opinion issued by the rating agency.

lion (-28.9%), despite the fact that interest rates BUSINESS PERFORMANCE continue to be particularly low and reduced the spread considerably, which has an impact on intermediation income. In the first quarter of 2010 the Carige Group The reduction in interest margin (-14.9%) was continued to provide support to companies and partially offset by the development of revenues households despite the fact that the macroeco- from services (20.2%), both for commissions nomic outlook has only just begun to show the (17.3%) and for revenues from trading (48%). first small signs of recovery. Adjustments on loans, which fell to 25.2 million Loans granted (net of repurchase agreements) (-14.8%) and cost-control measures (+0.3%) amounted to about €22.8 billion, up by 9.7% complete the overview of economic postings for compared to March 2009 (+0.5% compared to the quarter. the end of 2009). €14.2 billion of such loans was granted to companies (+12.7% in twelve months and substantially in line with the figure of SIGNIFICANT EVENTS December 2009). OF THE FIRST THREE MONTHS OF 2010 Despite the difficult economic context, which has continued for over two years, the quality of loans, thanks to strict monitoring, shows a 4% On 15 January Carige and Banca del Monte ratio between non-performing loans and total dei Paschi di Siena (MPS) signed an agreement loans, which is substantially in line with the sys- for the sale of 22 MPS branches to the Carige tem. Group at a price of €130 million, recognized as Total savings at the end of March amounted to goodwill and subject to adjustment based on the about €46.6 billion, a rise of 6.9% compared to actual amount of direct and indirect savings at one year ago and slightly less (-0.8) than the the date of sale, expected by the end of the first end of 2009. Among the various components quarter 2010. there was a sharp rise in managed savings On 3 February the Executive Committee ap- (+18.6% in twelve months and +5.5% com- proved Carige’s entry into the ABI agreement pared to December 2009), driven by mutual “Household Plan: suspension of mortgage pay- funds and bank-insurance products. ments” for families having difficulty paying off Positive trends in commercial activities enabled their loan. General Management has been ap- the Group to generate €56.4 million gross profit pointed to determine the financial conditions for the quarter (-24.7%) and net of €32.1 mil-

9 their loan. General Management has been ap- the provisions contained in the Supervisory In- pointed to determine the financial conditions structions of the Bank of Italy (Circular no. 263 and operational methods to regulate loan pay- of 27/12/2006 as amended). ment suspension. The Banks of the Group operate within specific On 11 February, by virtue of the proxy given by limits of independence and avail themselves of the extraordinary shareholders’ meeting held on their own first level control structures. 3 November 2009 and following CONSOB ap- The risk analyses are supported not only by proval of the information and public offer state- regulatory models, but by more advanced meth- ment, the Board of Directors of the parent bank odologies which have made it possible, in time, determined the final conditions for the bond to expand the range of risks monitored and to loan “Banca Carige 4.75% 2010-2015 con- improve the assessment of the capital adequacy, vertible bond offer”, set €2.40 as the nominal from both a regulatory and managerial perspec- value of each bond issued, equal to the issue tive. price, and set a limit of 163,165,368 bonds For details on risk management, please refer to with a gross interest rate of 4.75% yearly. the section “Risk management” in the Explana- After auctioning off non-exercised rights, the of- tory notes. fer, which began on 15 February 2010, concluded on 18 March 2010 with the full subscription of all the bonds for a total value of €391.6 million, without requiring the intervention of the SIGNIFICANT EVENTS OCCURRED guarantee consortium, coordinated, managed AFTER 31 MARCH AND and composed by Mediobanca, Credit Suisse OUTLOOK FOR THE CURRENT YEAR and Natixis SA. On 22 February the Board of the parent bank co-opted Mr. Paul Marie Le Bihan as member of On 23 April the Parent bank – in accordance the board of directors of Banca Carige. with the aforementioned resolution passed by On 19 March the parent bank – in accordance the board of directors on 14 December 2009 with the resolution passed by the board of direc- (see “Significant events of the first three months tors on 14 December 2009 – bought 328,501 2010”) – bought an additional 1,437 shares of shares of Banca Cesare Ponti, equal to 11.25% Banca Cesare Ponti from other shareholders, of its share capital. Thus, Carige’s share in equal to 0.05% of its share capital. Thus, the Banca Cesare Ponti rose from 78.75% to 90%. share in Banca Cesare Ponti SpA rose from 90% Concerning the other banks of the Group, to 90.05%. on 19 January, the board of directors of Banca The Ordinary Shareholders’ Meeting of 29 April Cesare Ponti approved a project to open two appointed Mr. Bruno Deletré and Mr. Paul private branches in Monza and Brescia by next Marie Le Bihan – already co-opted by the Board June and another one in Lombardy by the end of Directors on 14 December 2009 and 22 Feb- of the year as part of the framework of their ruary 2010 to replace the outgoing Mr. Jean- 2010-2012 Strategic Plan approved on 15 De- Marie Paintendre and Mr. Jean-Jacques Bon- cember 2009, which focuses on developing the naud – as members of the Board of Directors, bank’s core business. with the same expiry of term in office as the other Board members, i.e., until the shareholders’ meeting called to approve the financial statements as at 31 December 2011. RISK MANAGEMENT The same meeting, as an extraordinary measure, approved certain amendments to the by- laws in order to fine-tune the organization of the In the Carige Group, any policies related to the parent bank’s general management with regards assumption of risks are set by the Board of Di- to the growth in size Carige and the Group have rectors of the Parent Bank at the moment of the undergone in recent years and in light of the in- preparation of strategic planning and the annual creasing complexity in organization and man- budget. agement that these development trends have The Parent Bank performs orientation and su- brought. Namely, the amendments concern arti- pervisory functions as regards all risks, in par- cles 20, 22, 25 and 28 of the by-laws. ticular by managing, in an integrated context, On 1 May, by virtue of the resolution passed by the Pillar 1 and Pillar 2 risks, in accordance with the Board of Directors on 21 December 2009,

Mr. Ennio La Monica, formerly Deputy General Manager of Governance and Control for Banca TRANSACTIONS WITH RELATED PARTIES Carige, undertook the office of General Man- ager, replacing Mr. Alfredo Sanguinetto. In April, the ordinary shareholders’ meetings of The Group maintains relations with Banca the subsidiary insurance companies were Carige shareholders who are able to exercise a held and they renewed the boards for 2010- significant influence, subsidiaries and other re- 2012, effective 1 May 2010. Mr. Alfredo San- lated parties regulated under market conditions. guinetto, General Manager of Banca Carige un- Please note that in the first three months, no til 30 April 2010, was appointed chairman of transactions with related parties subject to in- both insurance companies. formation to the public were carried out. The The ordinary shareholders’ meetings of the operations carried out in the period fall within other banks and subsidiaries in the the ordinary activities of the Group and do not Group were held in the same month. Some of present the relevance requirements as regards these appointed new boards for 2010-2012. the impact on the financial statements. In such an unstable context, where fluctuating Asset and liability transactions with related parties are detailed in the Explanatory Notes. markets are added to a climate of recession and stagnating interest rates, also due to the financial difficulties of certain countries, developing traditional intermediation activities - with the contribution of the 22 branches bought from the Monte dei Paschi di Siena group soon to be integrated - significant investments in technology, and constant attention to operating costs and risk will enable the Group to continue its sus- tainable growth also over future months.

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET

ASSETS (figures in thousands of euro)

Change % 3/10 3/10 31/3/10 31/12/09 31/3/09 12/09 3/09 10 -CASH AND CASH EQUIVALENTS 250,415 294,937 238,831 -15.1 4.9 20 -FINANCIAL ASSETS HELD FOR TRADING 711,108 695,323 775,794 2.3 -8.3 30 -FINANCIAL ASSETS DESIGNATED AT FAIR VALUE 666,315 680,400 701,301 -2.1 -5.0 40 -AVAILABLE-FOR-SALE FINANCIAL ASSETS 6,396,798 6,412,790 3,326,371 -0.2 92.3 50 -FINANCIAL ASSETS HELD TO MATURITY 0 0 528,846 … -100.0 60 -LOANS TO BANKS 2,573,621 1,312,196 1,644,045 96.1 56.5 70 -LOANS TO CUSTOMERS 22,493,105 22,786,425 20,496,266 -1.3 9.7 80 -HEDGING DERIVATIVES 109,529 78,180 77,086 40.1 42.1 100 -EQUITY INVESTMENTS 55,601 55,601 55,055 0.0 1.0 110 -TECHNICAL RESERVES CHARGED ON REINSURERS 185,745 184,412 173,678 0.7 6.9 120 -TANGIBLE ASSETS 1,115,430 1,118,215 1,120,514 -0.2 -0.5 130 -INTANGIBLE ASSETS 1,726,741 1,723,767 1,703,292 0.2 1.4 including: - goodwill 1,649,160 1,644,822 1,639,657 0.3 0.6 140 -TAX ASSETS 318,853 323,030 389,005 -1.3 -18.0 a) current 90,042 92,274 84,879 -2.4 6.1 b) advanced 228,811 230,756 304,126 -0.8 -24.8 150 -NON-CURRENT ASSETS AND DISCONTINUED GROUPS OF ASSETS 3,427 3,427 0 0.0 … 160 -OTHER ASSETS 682,075 630,671 863,221 8.2 -21.0 TOTAL ASSETS 37,288,763 36,299,374 32,093,305 2.7 16.2

LIABILITIES (figures in thousands of euro) Change % 3/10 3/10 31/3/10 31/12/09 31/3/09 12/09 3/09 10 -AMOUNTS OWED TO BANKS 1,279,454 659,278 581,457 94.1 … 20 -AMOUNTS OWED TO CUSTOMERS 14,860,166 15,061,675 12,194,461 -1.3 21.9 30 -SECURITIES IN ISSUE 9,929,162 10,019,877 9,667,633 -0.9 2.7 40 -FINANCIAL LIABILITIES FROM TRADING 97,222 95,950 117,503 1.3 -17.3 50 -FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE 1,381,542 1,303,966 1,291,444 5.9 7.0 60 -HEDGING DERIVATIVES 458,851 317,741 160,877 44.4 … 80 -TAX LIABILITIES 316,262 278,100 272,864 13.7 15.9 (a) current 89,039 50,449 52,793 76.5 68.7 (b) deferred 227,223 227,651 220,071 -0.2 3.2 100 -OTHER LIABILITIES 1,189,210 1,063,404 1,254,701 11.8 -5.2 110 -STAFF TERMINATION INDEMNITY 93,838 96,924 100,722 -3.2 -6.8 120 -PROVISIONS FOR RISKS AND CHARGES: 340,585 345,561 358,755 -1.4 -5.1 a) pensions and similar obligations 304,808 308,101 322,313 -1.1 -5.4 b) other provisions 35,777 37,460 36,442 -4.5 -1.8 130 -TECHNICAL RESERVES 3,462,527 3,203,897 2,539,725 8.1 36.3 140 -VALUATION RESERVES 562,515 587,238 337,895 -4.2 66.5 160 -CAPITAL INSTRUMENTS 15,785 1,178 1,179 … … 170 -RESERVES 424,052 214,250 329,639 97.9 28.6 180 -ADDITIONAL PAID-IN CAPITAL 1,012,742 1,012,742 1,013,259 0.0 -0.1 190 -CAPITAL 1,790,301 1,790,300 1,790,299 0.0 0.0 210 -MINORITY INTERESTS (+/-) 42,456 41,912 35,769 1.3 18.7 220 -PROFIT (LOSS) FOR THE PERIOD (+/-) 32,093 205,381 45,123 -84.4 -28.9 TOTAL LIABILITIES 37,288,763 36,299,374 32,093,305 2.7 16.2

CONSOLIDATED INCOME STATEMENT

INCOME STATEMENT (figures in thousands of euro) Change % 31/3/10 31/12/09 31/3/09 3/10 3/09 10 -INTEREST INCOME AND SIMILAR REVENUES 254,874 1,160,731 333,358 -23.5 20 -INTEREST EXPENSES AND SIMILAR CHARGES -92,295 -433,551 -142,240 -35.1 30 -NET INTEREST INCOME 162,579 727,180 191,118 -14.9 40 -COMMISSION INCOME 77,627 314,612 68,307 13.6 50 -COMMISSION EXPENSES -7,249 -35,956 -8,327 -12.9 60 -NET COMMISSIONS 70,378 278,656 59,980 17.3 70 -DIVIDENDS AND OTHER SIMILAR REVENUES 23 12,948 86 -73.3 80 -NET INCOME FROM TRADING ACTIVITIES 5,602 15,160 -8,166 … 90 -NET INCOME FROM HEDGING ACTIVITIES 200 2,565 2,315 -91.4 100 -PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 11,999 83,628 18,010 -33.4 a) loans 259 2,034 1,894 -86.3 b) available-for-sale financial assets 9,340 63,493 4,296 … c) financial assets held to maturity - 2,627 - … d) financial liabilities 2,400 15,474 11,820 -79.7 110 -NET VALUE ADJUSTMENT ON FINANCIAL ASSETS AND LIABILITIES DESIGNATED AT FAIR VALUE 2,160 -650 2,976 -27.4 120 -GROSS OPERATING INCOME 252,941 1,119,487 266,319 -5.0 130 -NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT OF: -24,607 -130,913 -30,177 -18.5 a) loans -25,157 -99,539 -29,525 -14.8 b) available-for-sale financial assets -42 -30,888 -522 -92.0 d) other financial assets 592 -486 -130 … 140 -NET INCOME FROM FINANCIAL MANAGEMENT 228,334 988,574 236,142 -3.3 150 -NET PREMIUMS 413,007 1,449,133 395,996 4.3 160- BALANCE OF OTHER EXPENSES/REVENUES FROM INSURANCE MANAGEMENT -428,329 -1,495,096 -401,061 6.8 170- NET INCOME FROM FINANCIAL AND INSURANCE MANAGEMENT 213,012 942,611 231,077 -7.8 180 -ADMINISTRATIVE COSTS: -160,092 -654,150 -160,929 -0.5 a) staff costs -93,588 -385,515 -93,942 -0.4 b) other administrative costs -66,504 -268,635 -66,987 -0.7 190 -NET PROVISIONS FOR RISKS AND CHARGES -496 -5,079 -1,699 -70.8 200 -DEPRECIATION OF TANGIBLE ASSETS -5,926 -24,048 -5,676 4.4 210 -AMORTIZATION OF INTANGIBLE ASSETS -6,197 -22,302 -4,600 34.7 220 -OTHER OPERATING EXPENSES AND REVENUES 16,112 68,835 16,820 -4.2 230 - OPERATING COSTS -156,599 -636,744 -156,084 0.3 240 -PROFIT (LOSS) FROM EQUITY INVESTMENTS - 7,257 - … 270 -PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS 6 -11 -32 … 280 -OPERATING PROFIT (LOSS) FROM ORDINARY ACTIVITIES BEFORE TAXES 56,419 313,113 74,961 -24.7 290 -INCOME TAXES FOR THE PERIOD -23,771 -104,094 -28,495 -16.6 300 -PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 32,648 209,019 46,466 -29.7 320 -PROFIT (LOSS) FOR THE PERIOD 32,648 209,019 46,466 -29.7 330 -MINORITY INTERESTS 555 3,638 1,343 -58.7 340 -PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE PARENT BANK 32,093 205,381 45,123 -28.9

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME

Change 3/10 - 3/09 31/3/2010 2009 31/3/2009 absolute % 10 PROFIT (LOSS) FOR THE PERIOD 32,648 209,019 46,466 (13,818) (30) Other income components after taxes 20 Available-for-sale financial assets 1,669 224,895 (54,436) 56,105 … 60 Cash flow hedge (26,169) (1,798) (15,060) (11,109) 74 100 Share of the valuation reserves of equity investments designated at equity 0000… 110 Total other income components after taxes (24,500) 223,097 (69,496) 44,996 (65) 120 TOTAL PROFITABILITY (Item 10+110) 8,148 432,116 (23,030) 31,178 … 130 Total consolidated profitability attributable to minority interests 779 4,047 1,329 (550) (41) 140 Total consolidated profitability attributable to the Parent bank 7,369 428,069 (24,359) 31,728 … Figures in thousands of euro

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY

Allocation of profits/losses Changes in the period for the previous year Operazioni sul patrimonio netto Reserves Balance as at 1/1/2010 Balance Balance as at 31/12/2009 Balance 31/3/2010 Changes in reserves in Changes Change in opening balances Change in opening Stock options New shares issued shares New Shareholders' equity as at 31/3/2010 as equity Shareholders' Own shares purchased Own shares derivatives Dividends and other allocations Changes in capital in Changes instruments Total profitability for the period as at Extraordinary distribution of dividends Shareholders' equity as at 31/3/2010 as equity Shareholders' Capital: 1,810,531 - 1,810,531 - 1 (15) 1,790,301 20,216 a) ordinary shares 1,636,221 1,636,221 - 1 (15) 1,615,991 20,216 b) other shares 174,310 174,310 - 174,310 - Additional paid-in capital 1,021,418 1,021,418 - - (61) 1,012,742 8,615 Reserves: 221,587 - 221,587 209,019 - - - 4,263 - - - - - 424,052 10,817 a) profits 149,634 149,634 209,019 - - 4,263 - 352,296 10,620 b) other 71,953 71,953 - - - 71,756 197

Valuation reserves 589,283 589,283 - - - (24,500) 562,515 2,268 Capital instruments 1,178 1,178 - 14,607 15,785 - Own shares (15) (15) - - (15) Profit (Loss) for the period 209,019 209,019 (209,019) - 32,648 32,093 555 Shareholders' equity for the group 3,811,089 - 3,811,089 - - - 1 4,422 - 14,607 - - 7,369 3,837,488 X

Minority interests 41,912 - 41,912 - - - - (235) 779 X 42,456 Figures in thousands of Euro

17 Allocation of profits/losses Changes in the period for the previous year Operazioni sul patrimonio netto Reserves Balance as at 1/1/2009 Balance Balance as at 31/12/2008 Balance Changes in reserves in Changes Change in opening balances Change in opening 31/12/2009 Stock options New shares issued shares New Own shares purchased Own shares derivatives Shareholders' equity as at 31/12/2009 at as equity Shareholders' Dividends and other allocations Changes in capital in Changes instruments Total profitability for the period as at Extraordinary distribution of dividends Shareholders' equity as at 31/12/2009 as equity Shareholders' Capital: 1,801,901 - 1,801,901 - 8,752 (122) 1,790,300 20,231 a) ordinary shares 1,626,634 1,626,634 - 9,709 (122) 1,615,990 20,231 b) other shares 175,267 175,267 (957) 174,310 - Additional paid-in capital 1,018,387 1,018,387 - 3,031 - 1,012,742 8,676 Reserves: 130,609 - 130,609 59,098 - 25,145 21,800 (15,065) - - - - - 214,250 7,337 a) profits 101,679 101,679 59,098 308 3,614 (15,065) - 142,494 7,140 b) other 28,930 28,930 24,837 18,186 - 71,756 197

Valuation reserves 411,165 411,165 (24,839) (20,140) - 223,097 587,238 2,045 Capital instruments 1,179 1,179 (1) 1,178 - Own shares (17) (17) 2 - (15) Profit (Loss) for the period 212,903 212,903 (59,098) (153,805) 209,019 205,381 3,638 Shareholders' equity for the group 3,541,754 - 3,541,754 - (146,716) 209 2,549 (14,776) - - - - 428,069 3,811,089 X

Minority interests 34,373 - 34,373 - (7,089) 97 10,895 (411) 4,047 X 41,912 Figures in thousands of Euro

18 Allocation of profits/losses Changes in the period for the previous year Operazioni sul patrimonio netto Reserves Balance as at 1/1/2009 Balance Balance as at 31/12/2008 at as Balance 31/3/2009 Changes in reserves in Changes Change in opening balances Stock options New shares New shares issued Shareholders' equity as at 31/3/2009 equity Shareholders' Own shares purchased Own shares derivatives Dividends and other allocations and otherDividends Changes in capital instruments Total profitability for the period as at Extraordinary distributionof dividends Shareholders' equity as at 31/3/2009 at as equity Shareholders' Capital: 1,801,901 - 1,801,901 (5) - - 1,790,299 11,597 a) ordinary shares 1,626,634 1,626,634 (5) - - 1,615,032 11,597 b) other shares 175,267 175,267 - 175,267 - Additional paid-in capital 1,018,387 1,018,387 49 - - 1,013,259 5,177 Reserves: 130,609 - 130,609 212,903 - 21 ------329,639 13,894 a) profits 101,679 101,679 212,903 21 - - - 300,709 13,894 b) other 28,930 28,930 - - - 28,930 -

Valuation reserves 411,165 411,165 - - - (69,497) 337,895 3,773 Capital instruments 1,179 1,179 - 1,179 - Own shares (17) (17) 2 - - (15) Profit (Loss) for the period 212,903 212,903 (212,903) - 46,466 45,123 1,343 Shareholders' equity for the group 3,541,754 - 3,541,754 ------(24,360) 3,517,394 X

Minority interests 34,373 - 34,373 - - 67 - - 1,329 X 35,769 Figures in thousands of Euro

19 NSOLIDATO

CONSOLIDATED CASH FLOW STATEMENT

Direct method

A. OPERATING ACTIVITIES 31/3/10 31/12/09 31/3/09 1. Management 365,394 1,207,786 312,097 - interest income received (+) 237,590 1,147,338 278,434 - interest expenses paid (-) (81,182) (465,248) (157,032) - dividends and similar revenues (+) 15 12,948 86 - net commissions (+/-) 80,506 278,656 59,980 - staff costs (-) (78,560) (329,050) (81,401) - net premiums collected 436,124 1,453,396 418,056 - other insurance revenues and expenses (-) (193,683) (662,699) (152,027) - other costs (-) (92,480) (340,551) (97,158) - other revenues (+) 59,394 209,252 43,829 - taxes and duties (-) (2,330) (96,256) (670) - costs/revenues from discontinued group assets and net of tax effect (+/-) 2. Liquidity generated/absorbed by financial assets (1,126,987) (3,892,594) (110,636) - financial assets held for trading (13,644) 23,143 (65,920) - financial assets designated at fair value 32,899 36,850 15,949 - available-for-sale financial assets 130,718 (2,508,769) (371,513) - loans to customers 283,300 (1,958,428) 454,511 - loans to banks: at sight (1,021,071) 49,452 (992) - loans to banks: other loans (418,175) (116,696) (394,180) - other assets (121,014) 581,854 251,509 3. Cash generated/absorbed by financial liabilities 732,222 2,906,347 (174,863) - amounts owed to banks: at sight 1,192,433 (208,895) (407,345) - amounts owed to banks: other (379,894) 69,653 187,748 - amounts owed to customers (196,321) 3,047,606 185,061 - securities in issue (58,996) 490,869 138,535 - financial liabilities from trading 15,463 5,861 14,414 - financial liabilities designated at fair value 66,926 (24,153) (23,470) - other liabilities 92,611 (474,594) (269,806) Net liquidity generated/absorbed by operating activities (29,371) 221,539 26,598 B. INVESTING ACTIVITIES 1. Liquidity generated by 12 72,090 3,688 - equity investment disposals - 1,350 12 - dividends received on equity investments 7 5,552 - - disposal/reimbursement of financial assets held to maturity - 62,886 3,271 - tangible asset disposals 5 2,302 405 - subsidiary and business unit disposals - - - 2. Liquidity absorbed by (7,388) (133,008) (81,178) - equity investment acquisitions - (10) - - acquisitions of financial assets held to maturity - (77,305) (74,168) - tangible asset acquisitions (3,331) (17,655) (947) - intangible asset acquisitions (4,057) (38,038) (6,063) - business unit acquisitions - - - Net liquidity generated/absorbed by investing activities (7,376) (60,918) (77,490) C. FUNDING ACTIVITIES - own share issues/acquisitions (7,775) (3,520) - - additional paid-in capital - 1,918 - - dividend distribution and others - (153,805) - Net liquidity generated/absorbed by funding activities (7,775) (155,407) - NET LIQUIDITY GENERATED/ABSORBED DURING THE PERIOD (44,522) 5,214 (50,892) KEY: (+) generated; (-) absorbed

RECONCILIATION

Amount Balance sheet items 31/3/10 31/12/09 31/3/09

Cash and cash equivalents at the beginning of the period 294,937 289,723 289,723

Total net liquidity generated/absorbed during the period (44,522) 5,214 (50,892)

Cash and cash equivalents: effect of exchange rate differences - - -

Cash and cash equivalents at period end 250,415 294,937 238,831

EXPLANATORY NOTES

MAIN CHANGES INTRODUCED BY IFRS 3 ACCOUNTING POLICIES AND IAS 27 AMENDMENTS

The revision of IAS 27 was undertaken together The Interim Report on Operations of the Banca with the IFRS 3 revision project. Carige Group for the first quarter of 2010 was The two standards were completely revised. In drawn up in accordance with IAS 34 (Interim particular, with regards to IFRS 3, the most financial statements). The international important changes concerned the recognition of accounting principles IAS/IFRS and the related costs incurred to perform a business interpretations (SIC/IFRIC), officially approved by combination or to perform a business the European Commission and in force on 31 combination where control is gained in two or March 2010, were applied for the valuation and more steps (step acquisition). measurement of the accounting balances, and, These are substantial changes since in the where necessary, the directions referred to in the previous version of IFRS 3 the cost of the Bank of Italy Circular no. 262 dated 22 combination included any cost directly December 2005 – update of 18 November pertaining to the business combination (e.g., 2009 - were observed (financial statements for commissions, professional and legal fees, due banks: schemes and rules for preparation). diligence and appraisals and costs for As regards the phases of classification, registering and issuing bonds and securities). recording, valuation and cancellation of asset In the new version, all acquisition-related costs and liability items involved in preparing this are recognized as period expense and are not Report, as with the methods of entering costs considered when calculating the cost of the and revenues, the same accounting standards combination. They are recognized in the income used in preparation of the financial statements statement as an expense at the time of the as at 31 December 2009 were applied, with the acquisition with the exception of costs for issuing exception of what is detailed below. debt securities or shares, which are reported Below are the main amendments to IAS/IFRS according to the provisions of IAS 32 and IAS standards that are effective with the preparation 39. of this Interim Report on Operations: The new standard also provides rules for recognizing increases and decreases in - IAS 27 - Consolidated and Separate company ownership when the entity already Financial Statements. In January 2008 IASB controls the company. For business published a new version of IAS 27 – combinations performed after the new standard Consolidated and Separate Financial becomes effective these are accounted for as Statements (approved with EC Regulation equity transactions without changing the value 494/2009 of 3/6/2009); of goodwill. - IFRS 3 – Business Combinations. In January With regards to IAS 27, an especially significant 2008 IASB published a new version of IAS amendment concerns cases where a parent 3 – Business Combinations (approved with company buys additional shares or reduces its EC Regulation 495/2009 of 3/6/2009). holding of a subsidiary without losing control. In The application of these amendments is particular, IAS 27 prescribes that changing its mandatory starting from the financial statements share of interest in a subsidiary without losing for reporting periods beginning on 1 July 2009 control should be considered as an equity or later. For the Banca Carige Group it takes transaction between equity holders effect on 1 January 2010, since it did not apply (controlling/non-controlling interests): them in advance as provided by both standards. income/loss is not posted in the income statement, but recognized under shareholders’ equity.

21 In addition, effective obligatorily for all financial (IASB) and International Financial Reporting statements pertaining to financial years starting Interpretations Committee (IFRIC) not yet on or after 1 January 2010, the following approved by the European Commission: principles (IAS/IFRS) and interpretations - Amendments to IFRS 1 – Additional (SIC/IFRIC) will be applied to this Interim exemptions for first-time adoption of Financial Report as well as the relative changes international financial reporting standards that have no significant impact on the (published on 23/7/2009); preparation of the report: - Revision of IAS 24 - Related Party Disclosures - IAS 39 – Financial instruments, recognition (published on 4/11/2009); and measurement – items eligible for - Introduction of IFRS 9 – Financial hedging (Reg. EC no. 839/2009 dated instruments: classification and measurement 15/9/2009); (published on 12/11/2009 at the end of the - IFRS 1 – First-time adoption of IFRS (Reg. first step in the project to revise IAS 39 for EC no. 1136/2009 dated 25/11/2009); classifying and measuring financial assets); - IFRIC 17 – Distributions of non-cash assets - Amendments to IFRIC 14 – Advance payment to owners (Reg. EC no. 1142/2009 dated of minimum contributions (published on 26/11/2009); 26/11/2009); - IFRIC 18 – Transfers of assets from - New interpretation: IFRIC 19 – Extinguishing customers (Reg. EC no. 1164/2009 dated financial liabilities by issuing equity 27/11/2009); instruments (published on 26/11/2009). - Improvements made to IFRS within the - Amendments to IFRS 1 – Limited exemption framework of the annual improvement from comparative IFRS 7 disclosures for first- process aimed at simplifying and clarifying time adoption of IFRS (published on international accounting principles IAS/IFRS 28/1/2010). (Reg. EC no. 243/2010 dated

23/3/2010); This Interim Report on Operations, not audited, - IFRS 2 – Share-based payment (Reg. EC should be read and analysed together with the no. 244/2010 dated 23/3/2010). financial statements for year ended as at 31

December 2009.

Lastly, below is a list of documents published by the International Accounting Standards Board

instrumental institutions (i.e. dissimilar activities) AREA AND METHODS have been consolidated on a line-by-line basis. OF CONSOLIDATION The concept of control applied is that set out in IAS 27. During the first three months of 2010 the consolidation scope has not changed compared 1. EQUITY INVESTMENTS IN to that determined for the preparation of the WHOLLY-OWNED SUBSIDIARIES financial statements as at 31 December 2009. AND SUBSIDIARIES SUBJECT TO It should be mentioned that the interest in Banca JOINT CONTROL Cesare Ponti SpA increased from 78.75% to 90.00% in the quarter after buying 328,501 Based on the IAS/IFRS principles, the area of shares. consolidation includes all subsidiaries, whether held directly or indirectly: therefore, even companies not classified as credit, financial or

1. Equity investments in exclusive subsidiaries and subsidiaries subject to joint control (consolidated proportionally)

Type of Shareholding relationship Availability of votes (2) (3) Name of the companies Head offices relationship Holding company (1) % Shareholding Actual % Potential % A. Companies A.1 Consolidated line-by-line Banking group 1. Banca Carige SpA Genoa 2. Cassa di Risparmio di Savona SpA Savona 1 A1.1 95.90 95.90 4.10 3. Cassa di Risparmio di Carrara SpA Carrara 1 A1.1 90.00 4. Banca del Monte Lucca SpA Lucca 1 A1.1 60.00 5. Banca Cesare Ponti SpA Milan 1 A1.1 90.00 90.00 10.00 6. Carige Asset Management SpA Genoa 1 A1.1 99.50 A1.19 0.50 7. Creditis Servizi Finanziari SpA Genoa 1 A1.1 100.00 8. Centro Fiduciario SpA Genoa 1 A1.1 76.95 A1.2 20.00 9. Argo Finance One Srl Genoa 1 A1.1 100.00 10. Priamar Finance Srl Genoa 1 A1.1 100.00 11. Argo Mortgage Srl Genoa 1 A1.1 60.00 12. Argo Mortgage 2 Srl Genoa 1 A1.1 60.00 13. Carige Covered Bond Srl Genoa 1 A1.1 60.00 14. Columbus Carige Immobiliare SpA Genoa 1 A1.1 100.00 15. Immobilire Carisa Srl Savona 1 A1.2 100.00

Insurance companies 18. Carige Assicurazioni SpA (4) Milan 1 A1.1 98,40 99,55 19. Carige Vita Nuova SpA Genoa 1 A1.1 100,00

Other companies 20. Dafne Immobiliare Srl Milan 1 A1.18 100,00 21. I. H. Roma Srl Milan 1 A1.19 100,00 22. Assi 90 Srl Genoa 1 A1.18 37.50 A1.19 57,50 A.2 Consolidated proportionally -

Key (1) Type of relationship: 1 = majority of voting rights at ordinary shareholders’ meeting 2 = dominant influence at ordinary shareholders’ meeting 3 = agreements with other shareholders 4 = other forms of control 5 = single management pursuant to article 26, paragraph 1 of Legislative Decree 87/92 6 = single management pursuant to article 26, paragraph 2 of Legislative Decree 87/92 7 = joint control (2) Availability of voting rights at ordinary shareholders’ meeting, distinguishing between actual and potential (3) Figure entered only if different from the equity investment share (4) The percentage of actual availability of votes differs from the equity investment share as it is calculated on the capital excluding own shares.

23 With regard to operations, the subsidiaries can not fully satisfy the conditions of the substantial be divided into banking (Banca Carige SpA, transfer to third parties of related risks and Cassa di Risparmio di Savona SpA, Cassa di rewards, consolidation was carried out on the Risparmio di Carrara SpA, Banca del Monte di basis of the company’s segregated assets. Lucca SpA, Banca Cesare Ponti SpA), asset The consolidated interim financial statements management (Carige Asset Management SGR have been prepared using: SpA), financial (Creditis Servizi Finanziari SpA), - the interim financial statements of the trust companies (Centro Fiduciario SpA), special Parent Bank and of the other consolidated purpose vehicles for securitisation transactions companies as at 31 March 2010, (Argo Finance One Srl, Priamar Finance Srl, approved by their respective Boards of Argo Mortgage Srl, Argo Mortgage 2 Srl), Directors and prepared in accordance special purpose vehicles for covered bond issue with the approved IAS/IFRS in force; transactions (Carige Covered Bond Srl), - reporting packages prepared by those insurance (Carige Vita Nuova Spa, Carige companies that did not adopt the IAS/IFRS assicurazioni SpA) real estate (Columbus Carige and approved by the respective Boards of Immobiliare SpA, Immobiliare Carisa Srl, Dafne Directors. Immobiliare Srl and I.H. Roma Srl) and insurance agencies (Assi 90 Srl). There are no subsidiaries excluded from the With regard to the four companies established area of consolidation. Companies for which for the same number of securitisation shares with voting rights have been received as transactions - Argo Finance One, Priamar a form of credit guarantee rather than as a Finance, Argo Mortgage and Argo Mortgage 2 means of exercising control over the companies – and to the company Carige Covered Bond under review were excluded from the area of please note that they have all been consolidated consolidation. in these financial statements on a line-by-line basis. 2. ADDITIONAL INFORMATION

With regard to the securitisation of Banca Associates that are entities in which the Group Carige’s performing loans carried out by Argo has significant influence were valued according Mortgage 2 in 2004, as the transaction does to the equity method.

Equity investments in companies subject to significant influence (consolidated using the equity method)

Shareholding relationship Availability of votes Name of the companies Head offices Holding company % Shareholding Actual % Potential % A. Companies consolidated with the equity method

1. Autostrada dei Fiori SpA Savona Banca Carige SpA 16.62 Cassa di Risparmio di Savona SpA 4.00

Companies in which the Group exerts a the total of the companies excluded does not significant influence that are not considered to exceed €50 million, have been classified as be significant have been valued at cost, in minor subsidiaries, in accordance with the accordance with the general principles set out in provisions on consolidated supervisory reporting the framework. Those companies with balance established by the Bank of Italy with circular no. totals of less than €10 million, and provided that 115 of 7 August 1990 as amended.

24 Equity investments in companies subject to significant influence excluded from the equity method

Shareholding relationship Availability of votes Name of the companies Head offices Holding company % Shareholding Actual % Potential %

1. Sport e Sicurezza Srl Milan Carige Ass.ni SpA 25.00 Carige V. N. SpA 25.00 2. Nuova Erzelli Srl Genoa Banca Carige SpA 40.00 3. Consorzio per il Giurista di Impresa Scrl in liquidazione Genoa Banca Carige SpA 50.00 4. World Trade Center Genoa SpA in liq. Genoa Banca Carige SpA 20.32

25 million, down by 0.8% but a 13.5% increase INTERMEDIATION ACTIVITIES compared to March 2009. Indirect deposits totalled 21,078.3 million, a decrease for the quarter (-0.7%), but The aggregate of Financial Intermediation substantially stable over the twelve month period Activities on behalf of customers (FIA) – (-0.1%). Indirect deposits represent 45.3% of direct and indirect deposits – amounted to total FIA and are composed of assets under €46,555.7 million, down by 0.8% compared to management (43.6%), and assets in custody for December 2009 and by 6.9% on a YoY basis. the remaining 56.4%. Direct deposits amounted to €25,477.4

FINANCIAL INTERMEDIATION ACTIVITIES (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 Total (A+B) 46,555,701 46,921,405 43,541,002 -0.8 6.9

Direct deposits (A) 25,477,435 25,695,779 22,445,605 -0.8 13.5 % on Total 54.7% 54.8% 51.6% Indirect deposits (B) 21,078,266 21,225,626 21,095,397 -0.7 -0.1 % on Total 45.3% 45.2% 48.4% - Assets under management (1) 9,180,272 8,701,235 7,743,235 5.5 18.6 % on Total 19.7% 18.5% 17.8% % on Indirect deposits 43.6% 41.0% 36.7% - Assets in custody (1) 11,897,994 12,524,391 13,352,163 -5.0 -10.9 % on Total 25.6% 26.7% 30.7% % on Indirect deposits 56.4% 59.0% 63.3% (1) Financial investment processes related to part of the securities portfolio of the Group insurance companies have been reviewed in 2009 . In compliance with this review the investment management agreements signed between the Parent Bank and the insurance subsidiaries have been cancelled and replaced by an advisory agreement, appointed to Carige AM SGR. In light of this, amounts pertaining to the insurance companies have been reclassified from assets under management to assets in custody. The aggregates for the previous periods have been adequately reclassified to allow a homogeneous comparison as at 31/12/2009.

Total funding, which includes direct deposits placed in current accounts and progressively from customers (€25,477.4 million) and banks transferred to indirect deposits in the first quarter (€1,279.5 million), amounted to €26,756.9 2010. The medium-long term component million, up in the three-month period and on a (10,522 million; 41.3% of the total) increased YoY basis, by 1.5% and 16.2% respectively. by 0.1% from the end of 2009 and 4.5% YoY. Direct deposits are down by 0.8% from the About €650 million in bonds reached maturity in beginning of the year but up by 13.5% in the the quarter (net of repurchases) and about €870 twelve-month period. Namely, amounts owed million in new bonds were issued, about €392 to customers, equal to €14,860.2 million, million of which were convertible bonds related decreased in the three-month period (-1.3%) but to recent capital strengthening. rose in the twelve-month period (+21.9%). The liabilities measured at fair value Securities in issue, equal to €9,929.2 (€688.1 million, +12% compared to December, million decreased from the beginning of the year and +17.9% compared to March 2009) are (-0.9%) and rose in the twelve-month period mainly comprised of structured bonds, placed (+2.7%). through Poste Italiane; they do not include the Short-term deposits (14,955.5 million; 58.7% of liabilities at fair value of Carige Vita Nuova, the total) decreased by 1.5% from the beginning related to those insurance products the of the year but increased by 20.9% from March investment risk of which rests on the insured. 2009. This increase was driven by the success of Amounts owed to banks totalled €1,279.5 the new on-line deposit account, “Contoconto”, million, with an increase of 94.1% in the first as well as the volumes deriving from the decree three months and over double in twelve months. law on repatriation of capital, temporarily

FUNDING (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 Total (A+B) 26,756,889 26,355,057 23,027,062 1.5 16.2

Direct deposits (A) 25,477,435 25,695,779 22,445,605 -0.8 13.5 Amounts owed to customers 14,860,166 15,061,675 12,194,461 -1.3 21.9 current accounts and free deposits 14,334,807 14,785,453 11,865,190 -3.0 20.8 repurchase agreements 368,083 107,748 156,503 … … term deposits 13,375 17,526 35,339 -23.7 -62.2 loans 4,008 3,398 3,588 18.0 11.7 commitments to repurchase own equity instruments 17,640 25,162 25,340 -29.9 -30.4 other deposits 122,253 122,388 108,501 -0.1 12.7 Securities in issue 9,929,162 10,019,877 9,667,633 -0.9 2.7 bonds 9,784,265 9,857,706 9,423,101 -0.7 3.8 other securities 144,897 162,171 244,532 -10.7 -40.7 Liabilities at fair value (1) 688,107 614,227 583,511 12.0 17.9 bonds 688,107 614,227 583,511 12.0 17.9 short term 14,955,467 15,189,555 12,372,042 -1.5 20.9 % on Total 58.7 59.1 55.1 -0.7 6.5 medium-long term 10,521,968 10,506,224 10,073,563 0.1 4.5 % on Total 41.3 40.9 44.9 1.0 - 8.0

Amounts owed to banks (B) 1,279,454 659,278 581,457 94.1 … Deposits of central banks 23,957 24,127 - -0.7 … Current accounts and free deposits 46,602 1,211 126,342 … -63.1 Term deposits 281,106 268,968 31,685 4.5 … Repurchase agreements 328,734 9,139 130,666 … … Loans 599,055 355,832 292,758 68.4 … Other - 1 6 -100.0 -100.0 (1) Carige Vita Nuova liabilities, designated at fair value and relating to products for which risk is borne by the insured, are not included in this table.

Liguria’s contribution to direct deposits rose to 8.6% at March 2009). Veneto, the third region 58.5% (58% at December and 58.3% at March for importance, represents a 6.2% share, 2009). Lombardy recorded the second biggest followed by Tuscany (5.9%) and Latium (5.7%). contribution with 10% (10% at December and

27 DIRECT DEPOSITS (1) - GEOGRAPHICAL DISTRIBUTION (2) (figures in thousands of euro) Situation as at 31/3/10 31/12/09 31/3/09 %% %

Liguria 12,044,053 58.5% 11,960,810 58.0% 10,987,894 58.3% Lombardy 2,059,559 10.0% 2,059,135 10.0% 1,624,266 8.6% Veneto 1,277,563 6.2% 1,258,131 6.1% 1,191,762 6.3% Tuscany 1,219,783 5.9% 1,226,833 6.0% 1,244,260 6.6% Latium 1,176,872 5.7% 1,216,893 5.9% 1,152,905 6.1% Sicily 978,143 4.7% 1,009,948 4.9% 965,113 5.1% Piedmont 792,237 3.8% 804,948 3.9% 754,051 4.0% Emilia Romagna 351,268 1.7% 368,467 1.8% 304,139 1.6% Apulia 232,835 1.1% 253,500 1.2% 251,178 1.3% Sardinia 211,102 1.0% 221,527 1.0% 151,562 0.8% Marches 127,250 0.6% 112,218 0.5% 104,844 0.6% Valle d'Aosta 62,252 0.3% 53,403 0.2% 44,250 0.2% Umbria 42,331 0.2% 46,773 0.2% 38,886 0.2% Total Italy 20,575,248 99.8% 20,592,586 99.8% 18,815,110 99.8% Abroad 25,206 0.2% 26,356 0.2% 30,828 0.2% Total Italy + Abroad 20,600,454 100.0% 20,618,942 100.0% 18,845,938 100.0% Other items (3) 4,876,981 5,076,837 3,599,667 Total direct deposits 25,477,435 25,695,779 22,445,605

(1) Items 20, 30 and 50 of Liabilities and Shareholders' equity. Carige Vita Nuova liabilities, designated at fair value and relating to products for which investment risk is borne by the insured, are not included in this table. (2) Figures per branch province. (3) Bonds issued under the EMTN programme, subordinated loans, bonds issued and placed through the BancoPosta network, other bonds issued by the SPV relating to the securitization of loans, and deposits from the "contoconto" on line deposit account.

70.1% of the amounts owed to customers refers December and March 2009). Public to consumer households with €10,419.2 million administrations intermediate €618.7 million (68.6% at December and 66.4% at March (4.2% of the total), private social bodies and 2009) while the share of non-financial non classified entities €522.6 million (3.5% of companies and personal businesses with the total) and financial and insurance (€2,823.3 million) fell to 19% (20% at companies €396.6 million (2.7% of the total).

DIRECT DEPOSITS (1) - DISTRIBUTION BY BUSINESS SEGMENT (figures in thousands of euro)

31/3/10 31/12/09 31/3/09 %%%

Amounts owed to customers 14,860,166 15,061,675 12,194,461 Public Administration 618,695 4.2% 710,680 4.7% 719,768 5.9% Financial and insurance businesses 396,554 2.7% 410,371 2.7% 319,640 2.6% Non-financial businesses and personal businesses 2,823,254 19.0% 3,012,250 20.0% 2,435,757 20.0% Private social bodies and non classified entities 522,583 3.5% 473,420 3.1% 553,192 4.5% Families 10,419,233 70.1% 10,338,955 68.6% 8,096,853 66.4% Total residents 14,780,319 99.5% 14,945,677 99.2% 12,125,210 99.4% Non residents 79,847 0.5% 115,998 0.8% 69,251 0.6% Total 14,860,166 100.0% 15,061,675 100.0% 12,194,461 100.0%

Securities in issue 9,929,162 10,019,877 9,667,633

Liabilities at fair value 688,107 614,227 583,511

TOTAL DIRECT DEPOSITS 25,477,435 25,695,779 22,445,605

28 Indirect deposits totalled 21,078.3 million, a insurance products totalled €3,527.5 million decrease for the quarter (-0.7%), but (+5% and +21.5%). substantially stable over the twelve-month period Assets in custody totalled €11,898 million, (-0.1%). down by 5% in the three-month period and Assets under management, equal to 10.9% in the twelve-month period. This trend 9,180.3 million, rose by 5.5% compared to was driven by government securities, equal to December 2009 and 18.6% in the twelve-month €4,336.9 million (-26.5% and -27.1% in the period. Within this figure, mutual funds amount three and twelve-month periods, respectively), to €5,006.6 million (+4.5% and +16.9% while the other components recorded a 14.1% against the three and twelve-month periods increase in the quarter and 2.1% increase in the respectively), asset management amounted to twelve-month period, totalling €7,561.1 million. €646.2 million (+17% and +16%) while bank-

INDIRECT DEPOSITS (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 Total (A+B) 21,078,266 21,225,626 21,095,397 -0.7 -0.1 Assets under management (A) 9,180,272 8,701,235 7,743,235 5.5 18.6 Mutual funds and unit trusts 5,006,570 4,790,690 4,283,532 4.5 16.9 Asset management (1) 646,191 552,182 557,274 17.0 16.0 Bancassurance products 3,527,511 3,358,362 2,902,428 5.0 21.5

Assets in custody (B) 11,897,994 12,524,391 13,352,163 -5.0 -10.9 Government securities (1) 4,336,872 5,899,758 5,946,616 -26.5 -27.1 Other (1) 7,561,122 6,624,633 7,405,547 14.1 2.1 (1) Financial investment processes related to part of the securities portfolio of the Group insurance companies have been reviewed during the year . Incompliance with this review the investment management agreements signed between the Parent Bank and the insurance subsidiaries have been cancelled and replacedbyan advisory agreement, appointed to Carige AM SGR. In light of this, amounts pertaining to the insurance companies have been reclassified from assets under management to assets in custody. The aggregates for the previous periods have been adequately reclassified to allow a homogeneous comparison as at 31/12/2009.

Premiums collected on bank-insurance products unit-linked and Gestlink policies was marginal. increased from €268.5 million in the first quarter The premiums collected in non-life insurance of 2009 to €271.3 million in the same period amounted to €3.1 million (1.8 million at March this year. This was determined by the trend of 2009), in relation to the performance of traditional life insurance products (€267.2 elementary segments. million compared to €265.3 million in the three- month period of 2009), while the contribution of

BANCASSURANCE (figures in thousands of euro ) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/09 Total premiums collected 271,282 962,729 268,504 1.0 Life, of which: 268,213 947,535 266,682 0.6 . Unit linked/Index policies 1,046 23,289 1,390 -24.7 . Traditional policies 267,167 924,246 265,293 0.7

Non life, of which: 3,068 15,194 1,822 68.5 . Car insurance 166 790 278 -40.3 . Non car insurance 2,903 14,404 1,544 88.0

Within indirect deposits, Liguria's contribution (12.2%; 11.4% in December and 11.1% in was equal to 63.1% (64.3% in December and March 2009) and by Tuscany (6.3%; 6.2% in 63.9% in March 2009), followed by Lombardy December and 6% in March 2009).

29 INDIRECT DEPOSITS - GEOGRAPHICAL DISTRIBUTION (1) (figures in thousands of euro) Situation as at 31/3/10 31/12/09 31/3/09 %% %

Liguria 13,304,141 63.1% 13,638,518 64.3% 13,490,233 63.9% Lombardy 2,567,396 12.2% 2,415,542 11.4% 2,337,327 11.1% Tuscany 1,332,656 6.3% 1,323,363 6.2% 1,267,791 6.0% Veneto 1,104,318 5.2% 1,115,609 5.3% 1,189,473 5.6% Piedmont 765,758 3.6% 757,982 3.6% 768,412 3.6% Sicily 699,511 3.3% 686,484 3.2% 707,174 3.4% Latium 689,767 3.4% 652,389 3.4% 705,665 3.4% Emilia Romagna 250,629 1.2% 241,288 1.1% 261,925 1.2% Sardinia 78,205 0.4% 100,811 0.5% 71,053 0.3% Marches 67,383 0.3% 91,375 0.4% 65,341 0.3% Apulia 91,777 0.6% 90,089 0.6% 97,495 0.6% Valle d'Aosta 79,059 0.4% 68,094 0.3% 82,845 0.4% Umbria 44,131 0.2% 40,541 0.2% 45,679 0.2% Total Italy 21,074,731 100.0% 21,222,085 100.0% 21,090,412 100.0% Abroad 3,535 0.0% 3,541 0.0% 4,985 0.0% Total indirect deposits 21,078,266 100.0% 21,225,626 100.0% 21,095,397 100.0%

(1) Figures per branch province.

The main portion of indirect deposits was March 2009). Financial companies represented concentrated in the household segment, with 16.1% of the total (19.1% in December and 77% (74.1% at the end of the year and 76% in 16.5% in March 2009).

INDIRECT DEPOSITS - DISTRIBUTION BY BUSINESS SEGMENT (figures in thousands of euro)

31/3/10 31/12/09 31/3/09 %%% Public Administration 113,044 0.5% 114,612 0.5% 126,504 0.6% Financial and insurance businesses 3,385,583 16.1% 4,064,091 19.1% 3,477,662 16.5% Non-financial businesses and personal businesses 1,096,392 5.2% 1,063,233 5.0% 1,131,595 5.4% Private social bodies and non classified entities 165,547 0.8% 164,466 0.8% 172,926 0.9% Families 16,223,713 77.0% 15,727,733 74.1% 16,034,921 76.0% Total residents 20,984,280 99.6% 21,134,134 99.6% 20,943,608 99.3% Non residents 93,987 0.4% 91,491 0.4% 151,789 0.7% Total 21,078,266 100.0% 21,225,626 100.0% 21,095,397 100.0%

Cash loans to customers, net of value owed by customers and they rose by 1.9% from adjustments for €583.9 million, totalled December and 8.3% from March 2009. €22,281.9 million, down by 1.3% compared to Personal loans rose compared to the first three the end of 2009 (+10% in the twelve-month months of last year in number (+30.9%) and in period); before value adjustments, they totalled amounts (+40%). €22,865.8 million (-1.1% and +10.2% in the Bad loans reached €924 million, representing three and twelve-month period). The aggregate 4% of total lending, substantially in line with the amounted to €22,758.9 million, up by 0.5% system (3.86% at February 2010 according the from the end of 2009 and 9.7% compared to Bank of Italy), up by 3.6% over December and March 2009 (net of repo transactions). 3.3% over March 2009. Value adjustments represented hedging for non- Loans to banks, net of value adjustments for performing loans equal to 63.2%, down €0.9 million (same value in December and €0.8 compared to the 65.7% of December and million in March 2009), amounted to €2,374.7 72.2% of March 2009. million, more than double in the three-month Mortgages, amounting to €12,283.9 million, period and up by 73.8% in the twelve-month represented the most significant item of amounts period. They are mostly comprised of short-term loans.

30 The net interbank position (difference million, compared with €414.4 million in between loans and amounts owed to banks) December and €784.7 million in March 2009. showed a net credit position of €1,095.3

LOANS (1) (figures in thousands of euro)

Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 Total (A+B) 24,656,636 23,641,572 21,621,705 4.3 14.0

Loans to customers (A) 22,281,897 22,567,907 20,255,525 -1.3 10.0 -nominal value (2) 22,865,826 23,116,726 20,751,444 -1.1 10.2 current accounts 2,588,863 3,049,003 2,778,291 -15.1 -6.8 lending repurchase agreements 106,975 482,145 - -77.8 … mortgages (3) 12,283,879 12,050,626 11,337,436 1.9 8.3 credit cards, personal loans and salary-backed loans 579,914 578,871 531,280 0.2 9.2 leasing 806,048 810,255 814,799 -0.5 -1.1 factoring 137,379 141,119 127,303 -2.7 7.9 other loans 4,369,440 4,118,444 3,838,333 6.1 13.8 impaired assets (3) 1,993,328 1,886,263 1,324,002 5.7 50.6

-short term 4,779,716 5,371,688 4,932,531 -11.0 -3.1 % on nominal value 20.9 23.2 23.8 -10.0 -12.1 -medium/long term 17,162,072 16,909,159 15,131,605 1.5 13.4 % on nominal value 75.1 73.1 72.9 2.6 2.9 - Bad loans 924,038 835,879 687,308 10.5 34.4 % on nominal value 4.0 3.6 3.3 11.8 22.0 -Value adjustments (-) 583,929 548,819 495,919 6.4 17.7

Loans to banks (B) 2,374,739 1,073,665 1,366,180 …73.8 -nominal value (2) 2,375,612 1,074,538 1,366,958 … 73.8 compulsory reserves 411,646 220,045 283,295 87.1 45.3 other loans to central banks - - - …… current accounts and free deposits 147,153 63,481 50,227 …… term deposits 345,280 510,394 767,169 -32.4 -55.0 repurchase agreements 562,109 - 163,777 …… loans 893,596 264,891 86,273 …… impaired assets 15,828 15,727 16,217 0.6 -2.4

-short term 2,356,378 1,030,071 1,292,207 … 82.4 % on nominal value 99.2 95.9 94.5 3.5 4.9 -medium/long term 19,234 44,467 74,751 -56.7 -74.3 % on nominal value 0.8 4.1 5.5 -80.4 -85.2

-Value adjustments (-) 873 873 778 - 12.2

(1) Net of debt securities classified as L&R. (2) Before value adjustments. (3) Based on the new provisions issued by the Bank of Italy in the first update of Circular 262/2005 dated 18 November 2009 ("The bank financial statements: drafting tables and provisions"), including the reorganisation of the information on "impaired assets" and "assets sold and not cancelled", the latter are now recorded under the relevant technical forms and no more as an independent item. The corresponding figures as at 31/3/2009 have been adequately reclassified to allow a homogeneous comparison.

As regards the geographical breakdown, Liguria at March 2010 against 48.4% in December and accounts for 48.2% of loans to customers, down 47% in March 2009). Lombardy is the second against the 49.5% recorded in December and region, with a share of 14.9% (14.2% in 47% in March 2009. Without considering December and March 2009), Tuscany is the financial repos, the share of Liguria is third region with a share of 8.4% (8.3% and substantially stable compared to December 8.7% in December and March 2009 2009 and is up compared to March 2009 (48% respectively).

TOTAL LOANS TO CUSTOMERS (1) - GEOGRAPHICAL DISTRIBUTION (2) (figures in thousands of euro) Situation as at 31/3/10 31/12/09 31/3/09 %% %

Liguria 11,031,471 48.2% 11,436,561 49.5% 9,760,511 47.0% Lombardy 3,401,541 14.9% 3,288,914 14.2% 2,952,026 14.2% Tuscany 1,924,033 8.4% 1,911,421 8.3% 1,811,522 8.7% Piedmont 1,379,700 6.0% 1,387,020 6.0% 1,398,481 6.7% Emilia Romagna 1,359,362 5.9% 1,332,947 5.8% 1,179,924 5.7% Veneto 1,176,459 5.1% 1,176,306 5.1% 1,168,031 5.6% Latium 902,605 3.9% 901,086 3.9% 888,114 4.3% Sicily 638,699 2.8% 633,995 2.7% 610,991 2.9% Sardinia 331,990 1.5% 326,037 1.4% 235,207 1.1% Apulia 226,702 1.0% 228,871 1.0% 238,107 1.1% Marches 148,246 0.6% 150,189 0.6% 162,610 0.8% Umbria 100,928 0.4% 98,344 0.4% 100,610 0.5% Valle d'Aosta 23,535 0.1% 24,421 0.1% 21,771 0.1% Total Italy 22,645,271 99.0% 22,896,112 99.0% 20,527,905 98.9% Abroad 220,555 1.0% 220,614 1.0% 223,539 1.1% Total loans to customers 22,865,826 100.0% 23,116,726 100.0% 20,751,444 100.0%

(1) Gross of value adjustments and net of debt securities classified as L&R. (2) Figures per branch province.

Concerning the breakdown by business The share of public administrations was equal to segment, non-financial businesses and personal 5%, down compared to December (5.2%) and businesses represented 59% of loans to March 2009 (5.1%). customers, totalling €13,500.3 million (57.6% Concerning financial companies, their share, in December and 58.9% in March 2009). The without considering repurchase agreements share represented by households was equal to (4.6%), was substantially in line with December 29.1% compared to 28.7% in December and 2009 (4.5%) and up compared to 3.3% in 31% in March 2009, totalling €6,658.4 million. March 2009.

LOANS TO CUSTOMERS (1) - DISTRIBUTION BY BUSINESS SEGMENT (figures in thousands of euro) 31/3/10 31/12/09 31/3/09

Public Administration 1,144,356 5.0% 1,192,887 5.2% 1,060,392 5.1% Financial and insurance businesses 1,160,940 5.1% 1,494,792 6.5% 678,897 3.3% Non-financial businesses and personal businesses 13,500,299 59.0% 13,314,203 57.6% 12,218,777 58.9% Sales-related services 4,597,510 20.1% 4,517,194 19.5% 3,591,001 17.3% Building and public works 2,210,958 9.7% 2,208,551 9.6% 2,080,020 10.0% Wholesale & retail trade, salvage and repairs 2,072,718 9.1% 2,018,471 8.7% 2,038,343 9.8% Hotel and catering services 671,469 2.9% 646,101 2.8% 675,748 3.3% Shipping and air transport 422,217 1.8% 353,211 1.5% 303,787 1.5% Other 3,525,427 15.4% 3,570,676 15.4% 3,529,878 16.9% Private social bodies 108,373 0.5% 122,733 0.5% 108,735 0.4% Families 6,658,373 29.1% 6,629,029 28.7% 6,439,669 31.0% Total residents 22,572,342 98.7% 22,753,645 98.4% 20,506,470 98.8% Non residents 293,484 1.3% 363,081 1.6% 244,974 1.2% Total 22,865,826 100.0% 23,116,726 100.0% 20,751,444 100.0% (1) Gross of value adjustments and net of debt securities classified as L&R.

Total impaired loans amounted to €2,029.5 €507.3 million (+5.9% and +19% in the three million, up by 5.5% in the quarter and by 48.7% and twelve-month periods, respectively). in the twelve-month period. Over 99.2% of Impaired cash loans and credit commitments these refer to ordinary customers. amounted to €15.8 million and refer to a single Corresponding value adjustments amount to position, reclassified in the last quarter of 2009

32 from rescheduled to watchlist. of collateral and, to a lesser extent, Cash loans to customers equalled €1,993.3 renegotiated loans pursuant to law million (+5.7% from December and +50.6% 126/2008 with overdue payments in from March 2009). Impaired credit existence at the moment of renegotiation. commitments equalled Euro 20.3 million (-9.5% They were written down by 2.3% (2.2% in in the three-month period and -16.1% in the December 2009 and 6% in March 2009); twelve-month period). − past due loans totalled €497.6 million, As regards cash loans to customers, the an increase of 4.9% in the three-month analysis of the individual aggregates shows the period and more than double in the twelve- following: month period, with the entry (effective 31 − bad loans totalled €924 million, up by December 2009) of mortgage loans having 10.5% from the beginning of the year, and overdue payments ranging from 90 to 180 by 34.4% in the year; they were written days. They were written down by 2.4 % down by 47.1% (47.1% in December and (2.1% in December and 2.6% in March 52.2% in March 2009). The bad 2009); loans/loans ratio as regards customers Impaired credit commitments amount to equals 4% (3.6% in December and 3.3% in €20.3 million, down by 9.5% in the three-month March 2009); period and 16.1% in the twelve month period; − watchlist loans amounted to €441.9 they were written down by 24% (22.1% in million, down by 0.5% from the end of the December and 20.3% in March 2009). year and 9.3% in the twelve-month period. Overall, also considering performing loans, They were written down by 11.5% (14.9% in value adjustments on cash and endorsement December and 13.8% in March 2009); loans amounted to €593.8 million, €584.8 − rescheduled loans amounted to €129.8 million of which refers to cash loans and €9 million, down compared to €132.1 million million of which refers to endorsement loans in December 2009, but up compared to (2.2% hedging level). €5.2 million in March 2009 following the entry of significant positions with a high level

33 CREDIT QUALITY (1) (figures in thousands of euro)

31/3/10 31/12/09 Gross Value Net %%Gross Value Net exposure adjustments exposure b/a exposure adjustments exposure b/a (a) (b) (a)-(b) (a) (b) (a)-(b) Cash loans Bad loans 924,038 435,642 488,396 47.1 835,879 393,942 441,937 47.1 - customers 924,038 435,642 488,396 47.1 835,879 393,942 441,937 47.1 Watchlist loans 457,713 51,642 406,071 11.3 459,831 67,111 392,720 14.6 - banks 15,828 873 14,955 5.5 15,727 873 14,854 5.6 - customers 441,885 50,769 391,116 11.5 444,104 66,238 377,866 14.9 Rescheduled loans 129,841 2,935 126,906 2.3 132,073 2,840 129,233 2.2 - customers 129,841 2,935 126,906 2.3 132,073 2,840 129,233 2.2 Past due loans 497,564 12,176 485,388 2.4 474,207 10,160 464,047 2.1 - customers 497,564 12,176 485,388 2.4 474,207 10,160 464,047 2.1 Total Impaired loans 2,009,156 502,395 1,506,761 25.0 1,901,990 474,053 1,427,937 24.9 Performing loans 23,232,282 82,407 23,149,875 0.4 22,289,274 75,639 22,213,635 0.3 - banks 2,359,784 - 2,359,784 - 1,058,811 - 1,058,811 - - customers 20,872,498 82,407 20,790,091 0.4 21,230,463 75,639 21,154,824 0.4 Total cash loans 25,241,438 584,802 24,656,636 2.3 24,191,264 549,692 23,641,572 2.3 - banks 2,375,612 873 2,374,739 0.0 1,074,538 873 1,073,665 0.1 - customers 22,865,826 583,929 22,281,897 2.6 23,116,726 548,819 22,567,907 2.4 Credit commitments Impaired 20,335 4,874 15,461 24.0 22,459 4,969 17,490 22.1 - customers 20,335 4,874 15,461 24.0 22,459 4,969 17,490 22.1 Other loans 1,665,482 4,091 1,661,391 0.2 1,731,109 4,588 1,726,521 0.3 - Banks (2) 58,500 - 58,500 - 120,643 - 120,643 - - customers 1,606,982 4,091 1,602,891 0.3 1,610,466 4,588 1,605,878 0.3 Total credit commitments 1,685,817 8,965 1,676,852 0.5 1,753,568 9,557 1,744,011 0.5 - banks 58,500 - 58,500 - 120,643 - 120,643 - - customers 1,627,317 8,965 1,618,352 0.6 1,632,925 9,557 1,623,368 0.6 Total 26,927,255 593,767 26,333,488 2.2 25,944,832 559,249 25,385,583 2.2 - banks 2,434,112 873 2,433,239 0.0 1,195,181 873 1,194,308 0.1 - customers 24,493,143 592,894 23,900,249 2.4 24,749,651 558,376 24,191,275 2.3

31/3/09 31/12/08 Gross Value Net Gross Value Net % % exposure adjustments exposure b/a exposure adjustments exposure b/a (a) (b) (a)-(b) (a) (b) (a)-(b) Cash loans Bad loans 687,308 358,568 328,740 52.2 621,749 334,315 287,434 53.8 - customers 687,308 358,568 328,740 52.2 621,749 334,315 287,434 53.8 Watchlist loans 404,376 55,895 348,481 13.8 408,737 60,301 348,436 14.8 - banks 243 21 222 8.6 241 21 220 8.7 - customers 404,133 55,874 348,259 13.8 408,496 60,280 348,216 14.8 Rescheduled loans 21,207 1,072 20,135 5.1 21,068 1,069 19,999 5.1 - banks 15,972 757 15,215 4.7 15,873 757 15,116 4.8 - customers 5,235 315 4,920 6.0 5,195 312 4,883 6.0 Past due loans 227,328 5,915 221,413 2.6 242,266 4,437 237,829 1.8 - banks 2 - 2 - 2 - 2 - - customers 227,326 5,915 221,411 2.6 242,264 4,437 237,827 1.8 Total Impaired loans 1,340,219 421,450 918,769 31.4 1,293,820 400,122 893,698 30.9 Performing loans 20,778,183 75,247 20,702,936 0.4 20,813,022 72,392 20,740,630 0.3 - banks 1,350,741 - 1,350,741 - 970,837 - 970,837 - - customers 19,427,442 75,247 19,352,195 0.4 19,842,185 72,392 19,769,793 0.4 Total cash loans 22,118,402 496,697 21,621,705 2.2 22,106,842 472,514 21,634,328 2.1 - banks 1,366,958 778 1,366,180 0.1 986,953 778 986,175 0.1 - customers 20,751,444 495,919 20,255,525 2.4 21,119,889 471,736 20,648,153 2.2 Credit commitments Impaired 24,249 4,922 19,327 20.3 23,974 4,933 19,041 20.6 - customers 24,249 4,922 19,327 20.3 23,974 4,933 19,041 20.6 Other loans 1,635,959 4,278 1,631,681 0.3 1,697,678 4,137 1,693,541 0.2 - Banks (2) 65,984 - 65,984 - 85,963 - 85,963 - - customers 1,569,975 4,278 1,565,697 0.3 1,611,715 4,137 1,607,578 0.3 Total credit commitments 1,660,208 9,200 1,651,008 0.6 1,721,652 9,070 1,712,582 0.5 - banks 65,984 - 65,984 - 85,963 - 85,963 - - customers 1,594,224 9,200 1,585,024 0.6 1,635,689 9,070 1,626,619 0.6 Total 23,778,610 505,897 23,272,713 2.1 23,828,494 481,584 23,346,910 2.0 - banks 1,432,942 778 1,432,164 0.1 1,072,916 778 1,072,138 0.1 - customers 22,345,668 505,119 21,840,549 2.3 22,755,578 480,806 22,274,772 2.1

(1) Net of debt securities classified as Loans & Receivables (L&R) (2) Based on the new provisions issued by the Bank of Italy in the first update of Circular 262/2005 also commitments taken towards the guarantee interbank systems have now been recorded among credit commitments. Previous periods have been reclassified.

Impairment by geographical area shows a fall in pertaining to Liguria was 33.4% compared with incidence for Liguria and a rise in incidence for 34.8% in December and 39% in March 2009. areas outside Liguria, especially in Lombardy, The region with the second biggest share was Piedmont and Veneto, regions hit harder by the Lombardy, with 24.2%, followed by Piedmont crisis. In detail, the share of bad loans and Tuscany with 12.5% and 8.9% respectively.

34 BAD LOANS TO CUSTOMERS (1) - GEOGRAPHICAL DISTRIBUTION (2) (figures in thousands of euro) Situation as at 31/3/10 31/12/09 31/3/09 %% %

Liguria 308,891 33.4% 290,570 34.8% 268,023 39.0% Lombardy 223,331 24.2% 193,247 23.1% 138,192 20.1% Piedmont 115,899 12.5% 102,978 12.3% 80,899 11.8% Tuscany 81,976 8.9% 75,194 9.0% 64,152 9.3% Emilia Romagna 64,399 7.0% 57,996 6.9% 47,950 7.0% Latium 35,902 3.9% 33,258 4.0% 27,807 4.0% Veneto 24,748 2.7% 21,281 2.5% 13,695 2.0% Sicily 20,256 2.2% 19,213 2.3% 16,185 2.4% Apulia 16,290 1.8% 12,709 1.5% 10,511 1.5% Sardinia 12,569 1.4% 11,889 1.4% 6,429 0.9% Marches 10,735 1.2% 10,059 1.2% 7,506 1.1% Umbria 6,556 0.7% 5,162 0.6% 4,739 0.7% Valle d'Aosta 1,028 0.1% 815 0.1% 225 0.0% Total Italy 922,580 99.8% 834,371 99.8% 686,313 99.9% Abroad 1,458 0.2% 1,508 0.2% 995 0.1% Total 924,038 100.0% 835,879 100.0% 687,308 100.0%

(1) Gross of value adjustments and net of debt securities classified as L&R. (2) Figures per branch province.

The bad loans/lending ratio stood at 4%, a rise Piedmont recorded the highest ratio (8.4%), an in all regions: the ratio in Liguria was recorded increase compared to December (7.4%) and at 2.8%, an increase compared to 2.5% in March 2009 (5.8%). Veneto had the lowest ratio December and 2.7% in March 2009. In (2.1%), an increase compared to December Lombardy it grew by 6.6%, compared to 5.9% in (1.8%) and March 2009 (1.2%). December and to 4.7% in March 2009.

35 BAD LOANS/LENDING RATIO (1) - GEOGRAPHICAL DISTRIBUTION (2) (Percentage values) . 31/3/10 31/12/09 31/3/09

Piedmont 8.4% 7.4% 5.8% Lombardy 6.6% 5.9% 4.7% Marches 7.2% 6.7% 4.6% Umbria 6.5% 5.2% 4.7% Apulia 7.2% 5.6% 4.4% Emilia Romagna 4.7% 4.4% 4.1% Tuscany 4.3% 3.9% 3.5% Sardinia 3.8% 3.6% 2.7% Latium 4.0% 3.7% 3.1% Sicily 3.2% 3.0% 2.6% Liguria 2.8% 2.5% 2.7% Valle d'Aosta 4.4% 3.3% 1.0% Veneto 2.1% 1.8% 1.2% Total Italy 4.1% 3.6% 3.3% Abroad 0.7% 0.7% 0.4% Total 4.0% 3.6% 3.3%

(1) Gross of value adjustments and net of debt securities classified as L&R. (2) Figures per branch province.

Distribution by business segment shows a works segment (€159.1 million, 17.2%), decrease in the share of companies in all sectors followed by the wholesale and retail trade and and an increase in households. Non-performing repairs segments (€133.4 million, 14.4%). loans to non-financial companies and personal Households represented the second sector by businesses increased to €626.8 million with a volume with a share equal to 28.5% of the share of 67.8% (68.9% in December and 70.7% aggregate (28.3% in December and 26.4% in in March 2009). The segment with the highest March 2009). share of bad loans was the building and public

BAD LOANS (1) - DISTRIBUTION BY BUSINESS SEGMENT (figures in thousands of euro)

31/3/10 31/12/09 31/3/09 %%%

Public Administration ------Financial and insurance businesses 22,649 2.5% 12,921 1.5% 12,928 1.9% Non-financial businesses and personal businesses 626,763 67.8% 576,210 68.9% 485,825 70.7% Building and public works 159,131 17.2% 148,772 17.8% 126,264 18.4% Wholesale & retail trade, salvage and repairs 133,375 14.4% 123,010 14.7% 107,109 15.6% Sales-related services 105,052 11.4% 97,502 11.7% 83,771 12.2% Metal products 28,587 3.1% 25,506 3.1% 21,683 3.2% Hotel and catering services 24,647 2.7% 21,692 2.6% 18,158 2.6% Other 175,972 19.0% 159,730 19.1% 128,839 18.7% Private social bodies 1,901 0.2% 1,907 0.2% 1,853 0.2% Families 263,628 28.5% 236,159 28.3% 181,634 26.4% Total residents 914,942 99.0% 827,198 99.0% 682,240 99.3% Non residents 9,096 1.0% 8,681 1.0% 5,068 0.7% Total 924,038 100.0% 835,879 100.0% 687,308 100.0%

(1) Gross of value adjustments and net of debt securities classified as L&R.

The bad loans/loans ratio is above average for businesses, equal to 4.6% (4.3% and 4% in non-financial companies and personal December and March 2009, respectively) and

36 for households it is equal to 4% (3.6% in December 2009 and 2.8% in March 2009).

BAD LOANS/LENDING RATIO (1) - DISTRIBUTION BY BUSINESS SEGMENT (Percentage values) Situation as at 31/3/10 31/12/09 31/3/09

Public Administration - - - Financial businesses 2.0% 0.9% 1.9% Non-financial businesses and personal businesses 4.6% 4.3% 4.0% - of which (2): Sales-related services 2.3% 2.2% 2.3% Building and public works 7.2% 6.7% 6.1% Wholesale & retail trade, salvage and repairs 6.4% 6.1% 5.3% Hotel and catering services 3.7% 3.4% 2.7% Shipping and air transport 1.3% 1.5% 0.1% Private social bodies 1.8% 1.6% 1.7% Families 4.0% 3.6% 2.8% Total residents 4.1% 3.6% 3.3% Rest of the world 3.1% 2.4% 2.1% Total 4.0% 3.6% 3.3%

(1) Gross of value adjustments and net of debt securities classified as L&R. (2) Main business segments in terms of overall credit exposure shown.

Securities in the portfolio amounted to balance sheet data of Bank of Italy as at 31 €8,126.5 million, in line in the quarter (-0.8%) December 2008 approved, consistently with the and a rise of 40.6% in twelve months. Of these accounting principle adopted for the securities, 82.7% were debt securities. preparation of the consolidated financial Debt securities, equal to €6,723.2 million, statements of the Banca Carige Group and of decreased slightly (0.9%) in the three-month the financial statements of the Bank as at 31 period and rose by 47.1% on a YoY basis. They December 2009. are represented by government securities (60%) Mutual fund shares amounted to €381.6 and bonds (40%), 10% of which are corporate million, in line with December (+0.3%) and up bonds. Fixed-rate bonds accounted for about by 8.2% in the twelve-month period. 74% of the total and 63% of these were with As for the breakdown, 78.7% of the portfolio swap agreements. was represented by securities available for sale Equities, at €1,021.8 million, were substantially that are in line compared to the end of 2009 (- in line (-0.7%) against December and up by 0.2%) and an increase of 92.3% YoY. Securities 19% over March 2009. held for trading and fair value account for 8.1% These include the equity investment in Bank of and they were up by 1.9% and down by 2.8% in Italy, accounted for at €791.6 million; this figure the quarter respectively while both items fell in resulted from a valuation at fair value - using the twelve-month period (-7.1% and -5.3%, shareholders’ equity as the most reliable proxy respectively). of fair value – performed on the basis of the

37 SECURITIES PORTFOLIO (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Debt securities 6,723,188 6,786,437 4,569,871 -0.9 47.1 Held for trading 616,322 603,495 666,709 2.1 -7.6 Available for sale 5,250,175 5,263,087 2,357,321 -0.2 … Fair value 446,601 462,806 498,389 -3.5 -10.4 Loans and Receivable 410,090 457,049 518,606 -10.3 -20.9 Held to maturity - - 528,846 … -100.0 Equities 1,021,789 1,029,360 858,470 -0.7 19.0 Held for trading 117 704 1,216 -83.4 -90.4 Available for sale 1,021,672 1,028,656 857,254 -0.7 19.2

Shares in collective investment schemes 381,553 380,352 352,689 0.3 8.2 Held for trading 45,802 45,642 45,163 0.4 1.4 Available for sale 124,951 121,047 111,796 3.2 11.8 Fair value 210,800 213,663 195,730 -1.3 7.7 Total 8,126,530 8,196,149 5,781,030 -0.8 40.6 including: Held for trading 662,241 649,841 713,088 1.9 -7.1 Available for sale 6,396,798 6,412,790 3,326,371 -0.2 92.3 Loans and Receivable 410,090 457,049 518,606 -10.3 -20.9 Fair value 657,401 676,469 694,119 -2.8 -5.3 Held to maturity - - 528,846 … -100.0

The amendments made to international Pursuant to said amendments, the Carige accounting principles IAS 39 and IFRS 7 in Group reclassified securities, effective 1 July October and November 2008 allowed for new and 1 October, for a total residual amount of types of reclassifications, with the possibility of €727.5 million as at 31 March 2010, as retroactive effectiveness to 1 July 2008 if detailed in the table below: carried out before 31 October 2008.

TRANSFERS BETWEEN PORTFOLIOS: BOOK VALUE, FAIR VALUE AND EFFECT ON THE TOTAL PROFITABILITY (figures in thousands of euro)

Type of financial Origin Allocation Book value as at Fair Value as Income components in the absence Income components recorded for instrument portfolio portfolio 31/03/10 at 31/03/10 of the transfer (before taxes) the year (before taxes) Valuation-related Other Valuation-related Other

Debt securities HFT AFS 192,924 192,924 10,149 2,016 9,420 2,163 Equities HFT AFS 13,156 13,156 393 13 393 (219) Shares in collect. inv. HFT AFS 75,298 75,298 1,208 - 218 - schemes Debt securities HFT HTM (1) 36,248 36,248 519 457 169 972 Debt securities HFT L&R 147,818 136,132 6,019 798 1,564 Debt securities AFS L&R 262,042 273,288 6,444 2,489 2,489 Total 727,486 727,046 24,732 5,773 10,200 6,969 (1) An information disclosure has been provided for securities which, after being previously classified from HFT to HTM, have been reclassified from the latter to AFS following the application of forecasts set forth in paragraph 52 of IAS 39 in financial statements as at 31/12/2009.

If the Group had not reclassified the financial Maturity)1 and L&R (Loans & Receivables) for a assets listed above, the quarter would have nominal value of €747.3 million has an effective recorded positive income components interest rate of 6.1% with expected cash flows amounting to €24.7 million instead of €10.2 estimated at €1,003.9 million. million reported. The portfolio of debt securities reclassified in the 1 AFS (Available For Sale, HTM (Held To Riclassified in the financial statements as at 31/12/2009 in the AFS category following the application of the “Tainting Rule”

38 As at 31 March 2010, the exposure of the portfolio of assets available for sale, for an Group to financial instruments perceived by the aggregate book value of approximately market as risky (according to the definition in €61.3 million, (0.75% of the securities Recommendation issued on 7 April 2008 by the portfolio). It should be noted that such Financial Stability Forum and the joint document securitisation transactions do not include any issued by the Bank of Italy / CONSOB / ISVAP exposure to subprime mortgages, and that no. 2 of 6 February 2009) amounted to €178.8 75% of said transactions is comprised of million, equal to 2.20% of the security portfolio Junior, Mezzanine and Senior tranches of the and concerns: securitisations of mortgages granted by the - securities resulting from securitisation banks of the Group and originating from transactions (with the exclusion of CDOs – proprietary vehicles; Collateralised Debt Obligations), allocated to both the trading portfolio and to the

SECURITIES FROM SECURITISATION TRANSACTIONS (figures in thousands of euro) countervalues at g cost price % Senior 13,659 0.2% Mezzanine 1,867 0.0% Junior - 0.0% securitisations of consumer loans, lease, mortgage loans, other 15,526 0.2% Senior 3,135 0.0% Mezzanine 2,403 0.0% Junior 40,258 0.5% securitisations of mortgages of the Group 45,795 0.6% TOTAL 61,321 0.8%

- CDOs portfolio, for a book value of CMBS (Commercial Mortgage-Backed approximately €8.6 million (0.11% of the Securities, ABS (Asset-Backed Securities), aggregate portfolio), comprised of synthetic and by subprime positions with a book value securitisations which include CDS (Credit of €0.2 million (0.02 thousandth of the Default Swaps), and by securitisations of aggregate portfolio). It should be mentioned securitisations with exposures to RMBS that 34% of the total has an AAA rating; (Residential Mortgage-Backed Securities),

CDO PORTFOLIO (figures in thousands of euro) countervalues at shareholding Rating cost price % AAA 2,924 0.0% BB 1,911 0.0% B2,656 0.0% CCC 1,054 0.0% C95 0.0% n.a. - 0.0% Collateralized debt obligations 8,640 0.1%

- securities and derivatives related to with the hedging of the specific risk or, in leveraged finance transactions comprised of any case, with the provision for the funded and unfunded securities. The former repayment at par at maturity. have a book value of €108.9 million (equal to 1.34% of the aggregate portfolio) and 97% of these (equal to €105.6 million) is structured in a protected/guaranteed format,

39 Unfunded securities are subdivided in credit other hand, against a notional amount of and interest rate instruments; credit €25 million had no substantial impact. instruments have a notional amount of €10 million and a negative economic impact, net of value write-backs, for €0.1 million. Interest rate structured derivatives, on the

SECURITIES/DERIVATIVES RELATED TO LEVERAGED TRANSACTIONS (figures in thousands of shareholding countervalues at cost price % unhedged leveraged instruments: 99,827 1.2% credit 51,186 0.6% of which with repayment at par 49,991 0.6% rate 48,641 0.6% of which with repayment at par 46,541 0.6% hedged leveraged instruments: 9,024 0.1% rate 9,024 0.1% TOTAL 108,851 1.3%

It should be noted that the exposures balance of €617.4 million at 31 December towards Special Purpose Entities (SPE) were 2009) and composed of €802.2 million of limited to vehicle companies in the positive reserves, relating mainly to the securitisation transactions carried out valuation of the equity investment in the directly by the Group. Bank of Italy (€740.2 million), and of Concerning financial instruments issued by €183.1 million of negative reserves. These countries in difficulty due to high public refer to debt securities (mostly comprised of debt, Carige Group is exposed by about public, bank and corporate bonds with high €139 million before the Portuguese credit standing) for €79.1 million and to government (€85 million of reaches maturity equity and shares in collective investment in 2010), €56 million before the Greek schemes, mainly for interest held in leading government and €18 million before the Italian insurance companies, primary Spanish government. European banking institutions and private On the whole these amounts represent equity funds for €104.0 million. about 2.6% of the security portfolio. It Hedging derivative assets amounted to should also be mentioned that mutual funds €109.5 million, an increase compared to €78.2 managed by the Group asset management million in December (+40.1%) and to €77.1 company are not significantly exposed to million in March 2009. The value of hedging these countries. derivative liabilities, equal to €458.9 million was greater than €317.7 million in As at 31 March 2010, valuation reserves December (+44.4%) and €160.9 million in pertaining to the group and minority March 2009. interests, relative to securities classified in the AFS (Available For Sale) category amounted to €619.1 million (an increase of €1.7 million compared with the positive

40 ASSETS FROM HEDGING DERIVATIVES BY HEDGE TYPE (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Asset hedging derivatives - - - …… Fair value hedging - - - … … interest rates - - - …… Cash flow hedging - - - … … General interest rate risk hedging - - - … … Liability hedging derivatives 109,529 78,180 77,086 40.1 42.1 Fair value hedging 106,128 74,559 75,183 42.3 41.2 interest rates 106,128 74,559 75,183 42.3 41.2 Cash flow hedging - - - … … General interest rate risk hedging 3,401 3,621 1,903 -6.1 78.7 Total 109,529 78,180 77,086 40.1 42.1

LIABILITIES FROM HEDGING DERIVATIVES BY HEDGE TYPE (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Asset hedging derivatives 348,835 235,729 69,871 48.0 … Fair value hedging 348,835 235,729 69,871 48.0 … interest rates 348,835 235,729 69,871 48.0 … Cash flow hedging - - - … … General interest rate risk hedging - - - … … Liability hedging derivatives 110,016 82,012 91,006 34.1 20.9 Fair value hedging 101 3,119 130 -96.8 -22.3 interest rates 101 3,119 130 -96.8 -22.3 Cash flow hedging - - - … … General interest rate risk hedging 109,915 78,893 90,876 39.3 21.0 Total 458,851 317,741 160,877 44.4 …

The notional value of derivative contracts was Financial derivatives represent 98.4% of the equal to €10,379.5 million, greater than the aggregate. value in December (+11%) and March 2009 (+51.9%).

NOTIONAL VALUES OF DERIVATIVE CONTRACTS (figures in thousands of euro)

Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Financial derivatives 10,211,125 9,181,245 6,617,737 11.2 54.3 futures - - - …… forward agreements (1) 621,706 660,676 487,851 -5.9 27.4 swap 8,485,106 7,440,905 4,955,314 14.0 71.2 options purchased 969,298 701,172 1,018,410 38.2 -4.8 others 135,015 378,492 156,162 -64.3 -13.5 Credit derivatives 168,338 172,644 214,617 -2.5 -21.6 tror - 161 4,471 -100.0 -100.0 cds 168,338 172,483 210,146 -2.4 -19.9 TOTAL 10,379,463 9,353,889 6,832,354 11.0 51.9 (1) Sub-item "forward agreements" includes also the so-called "regular way" transactions.

41 Trading derivative contracts totalled €146.1 and a decrease compared to March 2009 (- million, up compared to December (+3.3%) 18.9%).

TRADING DERIVATIVES (figures in thousands of euro)

Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Positive countervalues 48,867 45,482 62,706 7.4 -22.1 Financial derivatives 47,827 44,591 52,304 7.3 -8.6 forward agreements 4,285 4,253 14,670 0.8 -70.8 swap 24,336 18,256 21,204 33.3 14.8 options purchased 19,206 22,082 16,430 -13.0 16.9 Credit derivatives 1,040 891 10,402 16.7 -90.0 cds 1,040 891 10,402 16.7 -90.0 others - - - … … TOTAL 48,867 45,482 62,706 7.4 -22.1

Revaluations amounting to €41.1 million and million were recorded on trading derivative write-downs to €122 million were registered on contracts; consequently, the net negative result hedging derivative contracts; taking into account amounted to €18.6 million. the net variation in the underlying assets for Overall, the net income on derivative contracts €81.2 million, the net result was positive for is negative for €18.4 million. €0.2 million. Revaluations for €9.7 million, write-downs for €20.6 million and net trading losses for €7.7

NET INCOME ON DERIVATIVE CONTRACTS AS AT 31/3/2010 (figures in thousands of euro)

Revaluations Write-downs Net profit Net income on trading

1. Trading contracts 9,652 - 20,591 - 7,672 - 18,611 1.1 Financial derivatives 8,755 - 20,094 - 7,132 - 18,471 1.2 Credit derivatives 897 - 497 - 540 - 140

Revaluations Write-downs Changes in underlying Net income from hedging 2. Hedging contracts 41,054 - 122,022 81,168 200 2.1 Asset hedging 1,460 - 118,062 118,380 1,778 2.2 Liability hedging 39,594 - 3,960 - 37,212 - 1,578

TOTAL 50,706 - 142,613 73,496 - 18,411

the same period in 2009 (-28.9%). This trend ECONOMIC RESULTS was determined by the considerable reduction in interest margins, down by about 15%, despite the rise in volumes, due to closing spreads and,

to a lesser extent, the progressive loss of The first three months of 2010 closed with a net maximum overdraft fees. profit of €32.1 million, against €45.1 million in

INCOME STATEMENT (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 31/12/09 31/3/09 absolute % 10 - INTEREST INCOME AND SIMILAR REVENUES 254,874 1,160,731 333,358 -78,484 -23.5 20 - INTEREST EXPENSES AND SIMILAR CHARGES -92,295 -433,551 -142,240 49,945 -35.1 30 - NET INTEREST INCOME 162,579 727,180 191,118 -28,539 -14.9 40 - COMMISSION INCOME 77,627 314,612 68,307 9,320 13.6 50 - COMMISSION EXPENSES -7,249 -35,956 -8,327 1,078 -12.9 60 - NET COMMISSIONS 70,378 278,656 59,980 10,398 17.3 70 - DIVIDENDS AND OTHER SIMILAR REVENUES 23 12,948 86 -63 -73.3 80 - NET INCOME FROM TRADING ACTIVITIES 5,602 15,160 -8,166 13,768 … 90 - NET INCOME FROM HEDGING ACTIVITIES 200 2,565 2,315 -2,115 -91.4 100 - PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 11,999 83,628 18,010 -6,011 -33.4 a) loans 259 2,034 1,894 -1,635 -86.3 b) available-for-sale financial assets 9,340 63,493 4,296 5,044 … c) financial assets held to maturity - 2,627 - - … d) financial liabilities 2,400 15,474 11,820 -9,420 -79.7 110 - NET VALUE ADJUSTMENT ON FINANCIAL ASSETS DESIGNATED AT FAIR VALUE 2,160 -650 2,976 -816 -27.4 120 - GROSS OPERATING INCOME 252,941 1,119,487 266,319 -13,378 -5.0 130 - NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT OF: -24,607 -130,913 -30,177 5,570 -18.5 a) loans -25,157 -99,539 -29,525 4,368 -14.8 b) available-for-sale financial assets -42 -30,888 -522 480 -92.0 d) other financial assets 592 -486 -130 722 … 140 - NET INCOME FROM FINANCIAL MANAGEMENT 228,334 988,574 236,142 -7,808 -3.3 150 - NET PREMIUMS 413,007 1,449,133 395,996 17,011 4.3 160- BALANCE OF OTHER EXPENSES/REVENUES FROM INSURANCE MANAGEMENT -428,329 -1,495,096 -401,061 -27,268 6.8 170- NET INCOME FROM FINANCIAL AND INSURANCE MANAGEMENT 213,012 942,611 231,077 -18,065 -7.8 180 - ADMINISTRATIVE COSTS: -160,092 -654,150 -160,929 837 -0.5 a) staff costs -93,588 -385,515 -93,942 354 -0.4 b) other administrative costs -66,504 -268,635 -66,987 483 -0.7 190 - NET PROVISIONS FOR RISKS AND CHARGES -496 -5,079 -1,699 1,203 -70.8 200 - DEPRECIATION OF TANGIBLE ASSETS -5,926 -24,048 -5,676 -250 4.4 210 - AMORTIZATION OF INTANGIBLE ASSETS -6,197 -22,302 -4,600 -1,597 34.7 220 - OTHER OPERATING EXPENSES AND REVENUES 16,112 68,835 16,820 -708 -4.2 230 - OPERATING COSTS -156,599 -636,744 -156,084 -515 0.3 240 - PROFIT (LOSS) FROM EQUITY INVESTMENTS - 7,257 - - … 270 - PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS 6 -11 -32 38 … 280 - OPERATING PROFIT (LOSS) FROM ORDINARY ACTIVITIES BEFORE TAXES 56,419 313,113 74,961 -18,542 -24.7 290 - INCOME TAXES FOR THE PERIOD -23,771 -104,094 -28,495 4,724 -16.6 300 - PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 32,648 209,019 46,466 -13,818 -29.7 320 - PROFIT (LOSS) FOR THE PERIOD 32,648 209,019 46,466 -13,818 -29.7 330 - MINORITY INTERESTS 555 3,638 1,343 -788 -58.7 340 - PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE 32,093 205,381 45,123 -13,030 -28.9 PARENT BANK

43 INCOME STATEMENT - QUARTERLY RESULTS (figures in thousands of euro)

4th quarter 31/3/10 31/3/09 CHANGE 2009 10 - INTEREST INCOME AND SIMILAR REVENUES 254,874 333,358 -78,484 264,845 20 - INTEREST EXPENSES AND SIMILAR CHARGES -92,295 -142,240 49,945 -91,712 30 - NET INTEREST INCOME 162,579 191,118 -28,539 173,133 40 - COMMISSION INCOME 77,627 68,307 9,320 87,025 50 - COMMISSION EXPENSES -7,249 -8,327 1,078 -10,493 60 - NET COMMISSIONS 70,378 59,980 10,398 76,532 70 - DIVIDENDS AND OTHER SIMILAR REVENUES 23 86 -63 2,646 80 - NET INCOME FROM TRADING ACTIVITIES 5,602 -8,166 13,768 2,701 90 - NET INCOME FROM HEDGING ACTIVITIES 200 2,315 -2,115 313 100 - PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 11,999 18,010 -6,011 59,667 a) loans 259 1,894 -1,635 211 b) available-for-sale financial assets 9,340 4,296 5,044 56,656 c) financial assets held to maturity - - - 2,627 d) financial liabilities 2,400 11,820 -9,420 173 110 - NET VALUE ADJUSTMENT ON FINANCIAL ASSETS DESIGNATED AT FAIR VALUE 2,160 2,976 -816 413 120 - GROSS OPERATING INCOME 252,941 266,319 -13,378 315,405 130 - NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT OF: -24,607 -30,177 5,570 -53,567 a) loans -25,157 -29,525 4,368 -39,400 b) available-for-sale financial assets -42 -522 480 -13,631 d) other financial assets 592 -130 722 -536 140 - NET INCOME FROM FINANCIAL MANAGEMENT 228,334 236,142 -7,808 261,838 150 - NET PREMIUMS 413,007 395,996 17,011 314,042 160- BALANCE OF OTHER EXPENSES/REVENUES FROM INSURANCE MANAGEMENT -428,329 -401,061 -27,268 -348,263 170- NET INCOME FROM FINANCIAL AND INSURANCE MANAGEMENT 213,012 231,077 -18,065 227,617 180 - ADMINISTRATIVE COSTS: -160,092 -160,929 837 -169,604 a) staff costs -93,588 -93,942 354 -99,516 b) other administrative costs -66,504 -66,987 483 -70,088 190 - NET PROVISIONS FOR RISKS AND CHARGES -496 -1,699 1,203 -1,301 200 - DEPRECIATION OF TANGIBLE ASSETS -5,926 -5,676 -250 -6,488 210 - AMORTIZATION OF INTANGIBLE ASSETS -6,197 -4,600 -1,597 -7,127 220 - OTHER OPERATING EXPENSES AND REVENUES 16,112 16,820 -708 18,215 230 - OPERATING COSTS -156,599 -156,084 -515 -166,305 240 - PROFIT (LOSS) FROM EQUITY INVESTMENTS - - - 762 270 - PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS 6 -32 38 - 280 - OPERATING PROFIT (LOSS) FROM ORDINARY ACTIVITIES BEFORE TAXES 56,419 74,961 -18,542 62,074 290 - INCOME TAXES FOR THE PERIOD -23,771 -28,495 4,724 -18,961 300 - PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 32,648 46,466 -13,818 43,113 320 - PROFIT (LOSS) FOR THE PERIOD 32,648 46,466 -13,818 43,113 330 - MINORITY INTERESTS 555 1,343 -788 1,078 340 - PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE PARENT BANK 32,093 45,123 -13,030 42,035

The net interest income amounted to interest income and performing assets was equal €162.6 million, down by 14.9% compared to to 1.9%, against 2.7% in the first quarter of the the first quarter of 2009. Interest income fell to previous year and 2.2% in 2009. €254.9 million (-23.5%) and interest fell to €92.3 million (-35.1 %). The ratio between net

44 INTEREST INCOME (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Financial assets held for trading 5,578 26,229 6,661 - 1,083 -16.3 Available-for-sale financial assets 45,643 119,626 25,160 20,483 81.4 Financial assets held to maturity - 15,516 5,661 - 5,661 -100.0 Loans to banks 3,471 26,928 11,089 - 7,618 -68.7 Loans to customers 199,778 969,586 284,442 - 84,664 -29.8 Other assets 404 2,846 345 59 17.1 TOTAL INTEREST INCOME 254,874 1,160,731 333,358 - 78,484 -23.5

INTEREST EXPENSES (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Amounts owed to banks 2,273 11,274 4,450 - 2,177 -48.9 Amounts owed to customers 24,759 120,706 39,916 - 15,157 -38.0 Securities in issue 57,510 266,716 89,084 - 31,574 -35.4 Financial liabilities designated at fair value 1,947 7,761 1,184 763 64.4 Other liabilities 71 329 91 - 20 -22.0 Hedging derivatives 5,735 26,765 7,515 - 1,780 -23.7 TOTAL INTEREST EXPENSES 92,295 433,551 142,240 - 49,945 -35.1

Net commissions rose by 17.3% (€70.4 intermediation, management and consultancy million). services. Commission expense fell by 12.9% due Commission income, at €77.6 million, to lower commissions for management and increased by 13.6%, mainly due to rise in intermediation services (€7.2 million). current account fees and commissions for

COMMISSION INCOME (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Guarantees issued 3,659 11,392 2,490 1,169 46.9 Management, dealing and consultancy services: 22,888 100,436 19,846 3,042 15.3 1. Financial instruments trading 163 398 26 137 … 2. Currency trading 772 3,133 682 90 13.2 3. Portfolio management 9,869 49,423 8,667 1,202 13.9 4. Securities custody and administration 850 3,395 740 110 14.9 5. Custodian bank 781 2,871 734 47 6.4 6. Placement of securities 3,064 11,445 2,389 675 28.3 7. receipt and issue of orders 3,375 12,685 2,921 454 15.5 8. Consultancy services - 1 - - … 9. Distribution of third-party services 4,014 17,085 3,687 327 8.9 - portfolio management 21 83 6 15 … - insurance products 266 1,879 377 - 111 -29.4 - other products 3,727 15,123 3,304 423 12.8 Collection and payment services 15,019 62,825 14,389 630 4.4 Servicing for securitizations 125 902 583 - 458 -78.6 Factoring services 377 1,447 334 43 12.9

Maintenance and management of the current accounts 24,360 90,097 21,284 3,076 14.5 Other services 11,199 47,513 9,381 1,818 19.4 TOTAL COMMISSION INCOME 77,627 314,612 68,307 9,320 13.6

45 COMMISSION EXPENSES (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Guarantees received 184 572 166 18 10.8 Management and intermediation services 451 3,057 1,007 - 556 -55.2 1. Financial instruments trading 86 803 513 - 427 -83.2 3. Portfolio management 451 3… 4. Securities custody and administration 311 1,975 418 - 107 -25.6 5. Financial instruments placement - 21 - 1 -100.0

6. Door-to-door sale of securities, financial products and services 50 272 74 - 24 -32.4 Collection and payment services 3,709 19,270 3,970 - 261 -6.6 Other services 2,905 13,057 3,184 - 279 -8.8 TOTAL COMMISSION EXPENSES 7,249 35,956 8,327 - 1,078 -12.9

INCOME FROM TRADING ACTIVITIES (figures in thousands of euro)

Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Debt securities 5,859 41,669 11,441 -5,582 - 48.8 Equities & collective investment schemes 173 1,400 -252 425 … Total equities, debt securities & collective investment schemes 6,032 43,069 11,189 -5,157 - 46.1 Financial derivatives -18,471 -17,972 -19,347 876 - 4.5 Credit derivatives -140 -14,183 -1,743 1,603 - 92.0 Currency differences 345 137 -92 437 … Other financial assets/liabilities from trading 17,836 4,109 1,827 16,009 … NET INCOME FROM TRADING ACTIVITIES 5,602 15,160 -8,166 13,768 …

Dividends and other similar revenues amounted Gross operating income reached €252.9 to €23 thousand (€86 thousand in the first million, down by 5%. quarter of 2009). Net value adjustments for deterioration of Net income from trading activities reached €5.6 loans and other financial transactions amounted million compared to a loss of €8.2 million at to €24.6 million, down by 18.5% from the first March 2009. Income from hedging activities is quarter of 2009. The item includes net lower (€200 thousand) compared to €2.3 adjustments to loans for €25.2 million, down million in March 2009. compared to the first quarter of 2009 (€29.5 Profit from the sale or repurchase of loans and million), while write-backs were recognized for financial assets/liabilities was also lower (€12 other financial transactions amounting to €592 million against €18 million) as well as net thousand, against adjustments for €130 income from financial assets measured at fair thousand in the same period of the year before. value (€2.2 million against €3 million).

NET VALUE ADJUSTMENTS TO LOANS AND OTHER FINANCIAL ITEMS (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Loans to banks - 95 - - … Loans to customers 25,157 99,444 29,525 - 4,368 - 14.8 Credit commitments (other financial transactions) - 592 486 130 - 722 … Available-for-sale financial assets 42 30,888 522 - 480 - 92.0 NET VALUE ADJUSTMENTS TO LOANS AND OTHER 24,607 130,913 30,177 -5,570 -18.5 FINANCIAL ITEMS

Net income from financial and Operating costs amounted to €156.6 insurance management decreased by million, substantially stable compared to the first 7.8%, amounting to €213 million. three months of 2009 (+0.3%), thanks to careful monitoring.

46 In particular, administrative costs totalled Net adjustments to tangible and intangible €160.1 million, a slight decrease (-0.5%) and assets amounted to €5.9 million and €6.2 distributed evenly between staff costs (-0.4% to million respectively, both increasing in €93.6 million) and other administrative costs (- comparison with March 2009 (4.4% and 34.7% 0.7% to €66.5 million). respectively). Net provisions for risks and charges amounted to €0.5 million against €1.7 million in March 2009.

OPERATING COSTS (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Staff costs 93,588 385,515 93,942 - 354 -0.4 Other administrative costs 66,504 268,635 66,987 - 483 -0.7 - general costs 53,307 213,281 54,613 - 1,306 -2.4 - indirect taxes 13,197 55,354 12,374 823 6.7 Net provisions for risks and charges 496 5,079 1,699 - 1,203 -70.8 Amortization and depreciation on: 12,123 46,350 10,276 1,847 18.0 - intangible fixed assets 6,197 22,302 4,600 1,597 34.7 - tangible fixed assets 5,926 24,048 5,676 250 4.4 Other operating expenses and revenues - 16,112 - 68,835 - 16,820 708 -4.2 TOTAL OPERATING COSTS 156,599 636,744 156,084 515 0.3

Other net operating revenues fell by 4.2% to €16.1 million, compared to the first quarter of 2009.

OTHER OPERATING REVENUES AND EXPENSES (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Lease income and rent 4,474 19,182 4,963 - 489 - 9.9 Charges to third parties: 11,514 46,582 10,975 539 4.9 recovery of taxes 11,487 46,468 10,647 840 7.9 customer insurance premiums 27 114 328 - 301 - 91.8 Other revenues 4,256 30,242 4,363 - 107 - 2.5 Total other revenues 20,244 96,006 20,301 - 57 - 0.3 Operating costs on financial leases - 179 - 2,380 - 62 - 117 188.7 Ordinary maintenance costs on investment property - 1,923 - 3,803 - 892 - 1,031 115.6 Expenses for improvement of third parties’ assets - 236 - 1,199 - 289 53 - 18.3 Other expenses - 1,794 - 19,789 - 2,238 444 - 19.8 Total other expenses - 4,132 - 27,171 - 3,481 - 651 18.7 TOTAL NET REVENUES 16,112 68,835 16,820 - 708 -4.2

Considering also profit on disposal of equity, the statement of comprehensive income investments for €6 thousand (loss of €32 showed a net income of €7.4 million, a thousand in March 2009), operating profit considerable increase compared to the loss of from ordinary activities before taxes €24.4 million in the first quarter of 2009. amounted to €56.4 million (-24.7% compared to March 2009). Taking into account income tax provisions, equal to €23.8 million (€28.5 million in March 2009), and profit attributable to minority interests, equal to €0.6 million (€1.3 million in March 2009), net profit amounted to €32.1 million compared to €45.1 million recorded in March 2009. Also taking into consideration the profit components charged directly to shareholders’

INSURANCE ACTIVITIES

PREMIUMS-RESERVES-ECONOMIC RESULT (figures in thousands of euro) Change % 3/10 3/10 31/3/2010 31/12/09 31/3/2009 12/09 3/09

Net premiums 413,007 1,449,133 395,996 4.3 Non-life insurance 130,821 475,898 117,743 11.1 recognised gross premiums (+) 138,309 551,376 121,414 13.9 premiums ceded to reinsurers (-) 6,570 60,190 6,174 6.4 variations (+/-) to premium reserve gross balances -759 -14,652 2,446 … variations (-/+) to premium reserves charged on reinsurers -159 -636 57 … Life insurance 282,186 973,235 278,253 1.4 recognised gross premiums (+) 283,724 982,212 280,111 1.3 premiums ceded to reinsurers (-) 1,538 8,977 1,858 - 17.2

Technical reserves 3,462,527 3,203,897 2,539,725 8.1 36.3 Non-life insurance 928,582 935,691 938,660 - 0.8 - 1.1 premium reserves 244,673 243,914 226,817 0.3 7.9 accident reserves 683,144 691,012 711,118 - 1.1 - 3.9 other reserves 765 765 725 - 5.5 Life insurance 2,533,945 2,268,206 1,601,065 11.7 58.3 mathematical reserves 2,526,372 2,274,716 1,582,738 11.1 59.6 reserves for amounts payable 4,214 8,123 3,061 - 48.1 37.7 other reserves 3,359 -14,633 15,266 … - 78.0

Technical reserves charged on reinsurers 185,745 184,412 173,678 0.7 6.9 Non-life insurance 100,597 96,453 85,131 4.3 18.2 premium reserves 13,677 13,489 12,915 1.4 5.9 accident reserves 86,920 82,964 72,216 4.8 20.4 other reserves - - - …… Life insurance 85,148 87,959 88,547 - 3.2 - 3.8 mathematical reserves 83,429 85,414 87,668 - 2.3 - 4.8 reserves for amounts payable 2,294 3,859 879 - 40.6 … other reserves -575 -1,314 - - 56.2 …

Balance of the insurance management -15,322 -45,963 -5,065 … Premiums excluding reinsurance 413,007 1,449,133 395,996 4.3 Net variations to technical reserves -255,566 -900,713 -258,580 - 1.2 Claims incurred and settled during the period -134,657 -459,041 -110,008 22.4 Other insurance revenues and expenses -38,106 -135,342 -32,473 17.3

Net premiums for insurance activities amounted to Income from insurance business went from -5.1 €413 million, an increase over €396 million in million to -15.3 million. This result, which appears March 2009. Net premiums collected in non-life to be inconsistent with the improvement in results insurance increased by 11.1% from €118 to €131 in the insurance segment, is due to particular million, above all for third-party car insurance, accounting policies that consider only technical while premiums for the life insurance segment cost items, which are offset by positive financial amounted to €282 Million (€278 million in March items in the gross operating margin. More 2009). specifically, net premiums rose to €413 million, Technical reserves stood at €3,463 million, up claims in the period increased by 22.4% to 8.1% compared to December 2009 and 36.3% €134.7 million, the net change in technical over March 2009. The change mainly concerned reserves stood at -€255.6 million (-€258.6 million the life insurance segment, with an increase of in March 2009) and net charges from insurance 11.7% (from €2,268 to €2,534 million in three operations stood at €38.1 million compared to months) while the non-life insurance segment €32.5 million recorded in March 2009. Finally, it dropped from €936 to €929 million. Technical should be pointed out that the economic result of reserves charged on reinsurers increased to Group Insurance Companies for the period, also €185.7 million from €184.4 million in December taking into consideration non-technical items, was and €173.7 million in March 2009.

48 positive for €8.2 million, an improvement over conditions. Please note that in the first three €2.7 million in the corresponding period in 2009. months of 2010, no transactions were concluded with related parties subject to public disclosure; in fact, the transactions completed during the period fall within the ordinary operations of the Group and do not possess the TRANSACTIONS WITH RELATED relevance requirements as regards the impact on PARTIES the financial statements. As at 31 March 2010, asset and liability transactions (with the exception of directors’ and statutory auditors’ fees, which are published The Group maintains relations with Banca annually in the Explanatory Notes to the Carige shareholders who are able to exercise a Consolidated Financial Statements) were as significant influence, subsidiaries and other follows: related parties regulated under market

RELATIONS WITH SHAREHOLDERS WHO EXERCISE A SIGNIFICANT INFLUENCE AND WITH INVESTEE COMPANIES (1) (figures in thousands of euro)

Assets Liabilities Guarantees Revenues Expenses Dividends (2) (3) and commitments Carige shareholders who exercise a significant influence 53,809 32,910 - 169 111 - Subsidiaries outside the area of consolidation ------Companies subject to significant influence 1,671 10,763 221 5 277 - TOTAL 55,480 43,673 221 174 388 -

(1) Relations with subsidiaries included in the area of consolidation were not taken into account. (2) Dividends collected by companies subject to significant influence netted off in the consolidation process were not shown. (3) Dividends distributed by Banca Carige.

RELATIONS WITH OTHER RELATED PARTIES (figures in thousands of euro) Assets Liabilities Guarantees Revenues Expenses Purchase of assets Insurance Indemnities and commitments and services redemptions and insurance redemptions 72,740 22,752 26,581 498 42 3 103 11 72,740 22,752 26,581 498 42 3 103 11

Other related parties are defined as: spouse and persons dependent upon the - executives with strategic responsibility for the interested party or upon the common-law entity and its parent bank; this refers to those spouse; who have the power and responsibility, - parties controlled by, jointly controlled by or directly or indirectly, for the management and subject to the significant influence of one of control of the Parent Bank’s activities, the entities pursuant to the previous points or including the Directors, the Statutory in which said entities hold, directly or Auditors, the Managing Director or the indirectly, a significant portion of the voting General Manager, the Deputy General rights. Managers and the Central Managers; - close relatives of one of the subjects referred Overall, the share of the total of relations with to in the previous point; this refers to persons related parties was moderate, as shown in the that can be expected to influence, or be following table: influenced by, the interested party in their relations with the Bank and therefore, by way of example, may include the common-law

49 WEIGHT OF TRANSACTIONS WITH OTHER RELATED PARTIES AS AT 31/3/2010 (figures in thousands of euro) Amount of Amount transactions of balance sheet % weight with related parties item Assets Item 70 - Loans to customers 126,480 22,493,105 0.6% Other asset items 1,740 14,795,658 0.0% Liabilities Item 20 - Amounts owed to customers 33,519 14,860,166 0.2% Other liability Items (1) 32,906 18,548,653 0.2% Income statement Item 10 - Interest income 595 254,874 0.2% Item 20 - Interest expenses 163 (92,295) -0.2% Item 160 - Balance of other expenses/revenues from insurance management (+/-) (271) (428,329) 0.1% Other positive Items in the income statement 180 527,328 0.0% Other negative Items in the income statement (2) 10 (205,159) 0.0%

(1) The weight is calculated on the other liability items, except for those referred to the shareholders' equity. (2) The weight is calculated on the other negative items, except for taxes and profit attributed to minority interests.

Equity investments were equal to €55.6 million, EQUITY INVESTMENTS as there were no changes since the end of 2009.

ANNUAL CHANGES IN EQUITY INVESTMENTS (figures in thousands of euro) 31/3/10 31/12/09 31/3/09

A. Opening balance 55,601 55,067 55,067 B. Additions - 1,948 - B.1 Acquisitions - - - B.2 Write-backs - - - B.3 Revaluations - 1,194 - B.4 Other changes - 754 - C. Decreases - 1,414 12 C1. Sales - 1,350 - C2. Value adjustments - 52 - C3. Other changes - 12 12 D. Closing balance 55,601 55,601 55,055

activities absorbed liquidity totalling €1,127 OWN SHARES, million, and financial liabilities generated CASH FLOW STATEMENT AND liquidity amounting to €732.2 million. Liquidity SHAREHOLDERS’ EQUITY absorbed by investment activities amounted to €7.4 million, and that absorbed by funding activity totalled €7.8 million. In the first three

months of 2010, net liquidity of €44.5 million was absorbed. At the end of the first quarter of 2010, and The consolidated shareholders’ equity and the similar to the situation in December and March net consolidated profit pertaining to the Parent 2009, Banca Carige held an essentially Bank are obtained from the net shareholders’ insignificant number of own shares (less than equity and profit for the year of Banca Carige €500). During the first three months, operating through the following changes: assets absorbed liquidity amounting to €29.4 million. In particular, operations generated a positive cash flow of €365.4 million, financial

50 RECONCILIATION STATEMENT OF BANCA CARIGE SHAREHOLDERS' EQUITY AND INCOME AND CONSOLIDATED FIGURES (figures in thousands of euro)

Shareholders' equity Income statement Balance as at 31/3/2010 - Banca Carige 3,923,541 22,012 Variations on book value -19,964 13,528 Value adjustments to allocated gains -2,685 -190 Share options survey - subsidiaries -14,779 -102 Amortised goodwill (previous accounting periods) -43,298 - Dividends distributed by subsidiaries and written off -3,025 -3,025 Dividends distributed by associated companies and written off - - Other -2,302 -130 Consolidated balance as at 31/3/2010 3,837,488 32,093

The number of private advisors amounted to RESOURCE MANAGEMENT 119 (114 in December and 140 in March 2009) while the number of affluent advisors increased to 308 (307 in December and 238 in The Carige Group’s distribution system is split March 2009). The financial consultancy service, into three major categories of channels: composed of 144 advisors (137 in December traditional, remote and mobile. and 129 in March 2009), is dedicated to The system of traditional channels are corporate customers, and the small business made up of branches, private and corporate service is structured into a network of 270 consultancy districts, affluent advisors and small advisors, a decrease compared to 279 in business advisors, based on a customer service December but an increase over 263 in March specialisation model that provides for the 2009. gradual passage, when possible and deemed Within remote channels, the number of useful, from one management of relations "Bancacontinua" branches remained unchanged connected with an operating unit to a at 19 compared to December 2009 (14 in customised management of customers, looked March 2009), and there were 761 ATMs (760 in after by specific advisors. December and 759 in March 2009). Contracts During the year, the number of branches for on-line and call centre services exceeded remained unchanged during the quarter at 643 205 thousand, an increase over both the three (254 in Liguria and 389 outside Liguria) and and twelve-month periods. during the year (252 in Liguria and 391 outside The Group also has a network of 414 insurance Liguria). agencies (278 of which also place bank products) located throughout Italy (394 in December and 380 in March 2009).

51 BRANCH NETWORK

A) TRADITIONAL CHANNELS 31/3/10 31/12/09 31/3/09 number %S number %S number %S NORTHWEST 382 59.4 382 59.4 381 59.3 Liguria 254 39.5 254 39.5 252 39.2 - Genoa 140 21.8 140 21.8 138 21.5 - Savona 64 10.0 64 10.0 64 10.0 - Imperia 29 4.5 29 4.5 29 4.5 - La Spezia 21 3.3 21 3.3 21 3.3 Lombardy 71 11.0 71 11.0 72 11.2 Piedmont 56 8.7 56 8.7 56 8.7 Valle d'Aosta 1 0.2 1 0.2 1 0.2 NORTHEAST 74 11.5 74 11.5 74 11.5 Veneto 46 7.2 46 7.2 46 7.2 Emilia Romagna 28 4.4 28 4.4 28 4.4 CENTRE 103 16.0 103 16.0 104 16.2 Tuscany 57 8.9 57 8.9 57 8.9 Latium 39 6.1 39 6.1 40 6.2 Marches 5 0.8 5 0.8 5 0.8 Umbria 2 0.3 2 0.3 2 0.3 SOUTH AND ISLANDS 83 12.9 83 12.9 83 12.9 Sicily 63 9.8 63 9.8 63 9.8 Apulia 9 1.4 9 1.4 9 1.4 Sardinia 11 1.7 11 1.7 11 1.7 ABROAD: Nice (France) 1 0.2 1 0.2 1 0.2 TOTAL NUMBER OF BRANCHES 643 100.0 643 100.0 643 100.0 31/3/10 31/12/09 31/3/09 Private consultants 119 114 140 Corporate consultants 144 137 129 Affluent consultants 308 307 238 Small business consultants 270 279 263 TOTAL CONSULTANTS 841 837 770 B) REMOTE CHANNELS 31/3/10 31/12/09 31/3/09 ATM - Bancomat 761 760 759 Self-service "Bancacontinua" branches 19 19 14 On line services (1) 204,968 196,682 172,701 C) MOBILE CHANNELS 31/3/10 31/12/09 31/3/09 Insurance agencies 414 394 380 - including: distributing banking products 278 279 272 (1) Number of Internet banking and Call center contracts.

At the end of March 2010, the personnel of rest of the personnel accounted for 73% of the the Group totalled 5,895 units (5,906 in aggregate. December and 5,880 in March 2009). Bank The number of the employees operating on the employees numbered 5,443 units, a decrease of market was equal to 68.5% of the total (68.3% 57 units from 5,500 in December 2009 due to in December and 68% in March 2009). 98 terminations (67 of which for retirement) and Insurance personnel amounted to 452 units 41 new hires. Executives represented 1.3% of (406 and 388 as at 31 December and 31 the aggregate and managers 25.8%, while the March 2009, respectively).

52 PERSONNEL 31/3/10 31/12/09 31/3/09 number % number % number % Number of bank employees Grade Executives 69 1.3 69 1.3 70 1.3 Managers 1,402 25.8 1,427 25.9 1,387 25.3 Other employees 3,972 73.0 4,004 72.8 4,035 73.5 TOTAL 5,443 100.0 5,500 100.0 5,492 100.0 Assets Registered office (1) 1,713 31.5 1,744 31.7 1,758 32.0 Market (1) 3,730 68.5 3,756 68.3 3,734 68.0 Insurance personnel 452 406 388 TOTAL (banking and insurance) 5,895 5,906 5,880

(1)Figures as at 31/3/2009 have been reclassified as regards the seconded personnel; therefore they differ from those previously published.

capital adequacy, from both a regulatory and RISK MANAGEMENT an economic perspective. In fact, the Second Pillar regulations provide that the Banks, also through the use of proprietary A. General aspects procedures, assess their current and future capital adequacy, expanding the range of risks In the Carige Group, any policies related to the to be taken into account compared with the First assumption of risks are set by the Board of Pillar. Directors of the Parent Bank at the moment of Carige carried out an activity aimed at the preparation of strategic planning and the identifying the risks to which the Group is annual budget. exposed, with regards to its own operations and The Parent Bank performs orientation and reference markets; therefore, the risk map and supervisory functions as regards all risks, in relative evaluation methods were defined – particular by managing, in an integrated quantitative if measurement methods are context, the Pillar 1 and Pillar 2 risks, in present, qualitative if relating to organisational accordance with the provisions contained in the controls – tracing management activities, mostly Supervisory Instructions of the Bank of Italy already in place, to an organic framework. (Circular no. 263 of 27/12/2006 as amended). Besides credit, market and operational risks, the The banks of the Group operate within specific concentration (both the single name and geo- limits of independence and avail themselves of sectorial components), interest rate, liquidity, their own supervisory structures. reputational and strategic risks deriving from The different risk categories are monitored by securitisations and residual risks were included the competent functions, Research and in the perimeter of the analysis for ICAAP Management Control, Risk Management and purposes. Credit Monitoring, and the outcome is subject to With reference to the methods used, internal periodic reporting to the Board of Directors, model for the quantification of the credit, market Executive Management, Asset & Liability and interest rate risks were used, together with Management Committee and to the ICAAP regulatory models for the operating and Committee. concentration risk. The analyses are supported not only by The analyses related to the remaining risks were regulatory models, but by more advanced conducted though the use of specific scorecards methodologies which have made it possible, aimed at identifying, with qualitative techniques, over time, to expand the range of risks the potential level of risk and the control monitored and to improve the assessment of the measures introduced.

53 As regards capitalisation aspects and the emerge, with the reaching of significant levels in hedging of existing risk with capital means, the terms of the total capital and tier 1 ratios. Group confirms its compliance with the expected thresholds for all ratios of the Bank of Italy B. Risks currently in force and calculated on the basis of Instructions for the completion of reports on the Credit and counterparty risk regulatory capital and prudential coefficients The risk measurement, management and control (Bank of Italy circular no. 155 of 18 December process is carried out through the activities of: 1991), and new provisions of prudential - Credit Risk Management, focused on the supervision for banks (Bank of Italy circular no. governance of credit activities, with the 263 of 27 December 2006). careful monitoring of the performance of The Group shows Total Capital Ratio (9.96%) risk indicators from rating sources (PD, and Tier 1 Ratio indicators (7.78%) considerably LGD and EAD) on the performing higher than the supervisory limits, and an excess portfolio and of the trends in poor capital of €393 million, and it expects, also in quality loans; Ratings support the the remainder of the financial year, to maintain decision-making process during the capitalisation levels adequately above the phase of granting and renewal of loans. Supervisory limits (Regulatory capital, including - an operational nature, aimed at the the Tier 3 subordinated loan, is estimated at accurate management of loans granted; €1,996 million). the Parent bank introduced an The analyses of the impact on capital of the instrument for the operational second pillar regulations confirm the solid monitoring of credit which facilitates the capitalisation of the Group: more specifically, combining of different fields of control the requirements on the risks not taken into activities with risk indicators developed account by the first pillar regulations appear to according to IRB methodology. In 2008, be more than offset by the savings on capital the Parent Bank implemented a credit generated by the application of more advanced monitoring tool allowing the various methods on the credit and market risks. control aspects to be combined with risk In addition, as regards ICAAP, with specific indicators developed according to reference to the level of capital, proprietary Internal Rating Based methodology, with methods were set in order to measure, from a the aim of improving efficiency of prudential prospective, certain assets which the control and promoting management that first pillar regulations do not take into account, is more consistent with customer risk imposing their sterilisation/deduction in profiles. regulatory capital: this refers specifically to controlling interests in insurance companies, to Furthermore, the Validation Function is those in the Bank of Italy and, finally, to the operational at the Parent bank in order to portion of goodwill deriving from acquisitions implement the different phases of internal made in recent years, deemed for all intents and validation, prior to the application to the purposes to be tangible assets. Supervisory Body for the authorisation of use, for This setup allows the implicit higher the purposes of reporting of the internal ratings. capitalisation of the Carige Group to fully

54 BREAKDOWN OF CONSOLIDATED REGULATORY CAPITAL (figures in thousands of euro) Situation as at 31/3/10 31/12/09 31/3/09 (1) (1) Tier 1 capital: positive elements (a) 3,395,427 3,395,427 3,297,610 Share capital 1,809,807 1,809,807 1,801,053 Reserves 354,352 354,352 234,933 Additional paid-in capital 1,021,261 1,021,261 1,018,289 Profit for the period 50,107 50,107 83,435 Innovative capital instruments (h) 159,900 159,900 159,900 Tier 1 capital: negative elements (b) 1,663,061 1,663,061 1,662,941 Goodwill 1,587,598 1,587,598 1,604,306 Other negative elements 75,463 75,463 58,635 Prudential filters for regulatory capital (c) -81,767 -81,767 -109,290 Deductions (d) 91,293 91,293 51,712 Total Tier 1 capital (e = a-b+c-d) 1,559,306 1,559,306 1,473,667 Core Tier 1 Capital (e-h) 1,399,406 1,399,406 1,313,767

Tier 2 capital (f) 765,594 754,708 736,519 Deductions (g) 350,012 350,012 350,312 Regulatory capital (e+f-g) 1,974,888 1,964,002 1,859,874 Tier 3 capital 96,675 97,175 97,175 Tier 3 calculable portion 21,085 22,915 32,987 Regulatory capital including Tier 3 1,995,973 1,986,917 1,892,861

Tier 3 subordinated loans not calculable in the Tier 3 75,590 74,260 64,188

(1) Figures as at 31/3/2010 and 31/3/2009 result from accounting and management estimates, as the official consolidated figures (Information form "1") are provided only every six months (in June and December).

55 CONSOLIDATED REGULATORY CAPITAL AND SOLVENCY RATIOS (figures in thousands of euro) Situation as at 31/3/10 31/12/09 31/3/09 (1) (1) Regulatory capital Core Tier 1 Capital 1,399,406 1,399,406 1,313,767 Tier 1 capital 1,559,306 1,559,306 1,473,667 Regulatory capital including Tier 3 1,995,973 1,986,917 1,892,861 Weighted assets Credit risk 17,837,313 17,580,575 17,012,250 Market risk 369,128 401,166 577,500 Operational risk 1,831,148 1,831,148 1,726,625 Other prudential requirements - - - Total weighted assets 20,037,588 19,812,888 19,316,375 Capital requirements Credit risk 1,426,985 1,406,446 1,360,980 Market risk 29,530 32,093 46,200 Operational risk 146,492 146,492 138,130 Other prudential requirements - - - Total 1,603,007 1,585,031 1,545,310 Subordinated loans covering market risks --- Surplus capital 392,966 401,886 347,551 Solvency ratios (%) Tier 1 capital/Credit risk weighted assets 8.74% 8.87% 8.66% Regulatory capital/Credit risk weighted assets 11.07% 11.17% 10.93% Core Tier 1/Total Risk-Weighted Assets 6.98% 7.06% 6.80% Tier 1 capital/Total weighted assets 7.78% 7.87% 7.63% Regulatory capital including Tier 3 capital/Total weighted assets 9.96% 10.03% 9.80%

Market risk Operative, or Italian Database of Operating This is measured on the securities and Losses), since its inception following an initiative derivatives portfolio through the daily of ABI. Furthermore, specifically as regards the determination of the Value at Risk (VaR) in risks connected with the failure of the IT system, accordance with the Montecarlo approach, with the Group defined Business Continuity and a confidence interval of 99% and a holding Disaster recovery plans aimed at the period of ten days. VaR analysis is supplemented identification of critical processes and of the by daily monitoring of profitability profiles with strategies for minimising the risks and the the calculation of accrued interests, profit and associated economic consequences, so as to be loss, and capital gains/losses recognised on the able to guarantee a prompt restoration of the financial instruments held in the portfolio. The operating processes. profitability determined in this way is constantly compared with the scenarios set out in the Interest rate risk budget. The foreign exchange risk and the The analysis of the interest rate risk is performed, gamma and vega risk on options are calculated on a monthly basis, with Gap analysis (with the with the standard Bank of Italy approach. three methodologies of incremental gap, incremental beta gap and shifted beta gap), Operational risk Duration analysis and Sensitivity analysis The basic Bank of Italy approach is used, which techniques. In addition, at consolidated level, provides for capital absorption equal to 15% of the Parent Bank periodically monitors its the average gross operating income of the last exposure to interest rate risk, in application of three years. In order to evolve towards more the standard Supervisory model. advanced methodologies, the Group takes part in the DIPO (Database Italiano Perdite Concentration risk

56 This risk is quantified using the Herfindhal index scorecard which assesses aspects such as the in accordance with the procedures provided by extent of the difference between forecasts and the Bank of Italy, as regards the single name final results, the solidity of market assumptions application; as regards geo-sectorial underlying the model, the ability to understand concentration risk, reference is made to the the impact of relevant normative drivers, as well method proposed by ABI and validated by the as the risk of inadequate implementation of Bank of Italy. The measurements show limited decisions. Securitisation transaction risks are exposure, consistent with the retail nature of the assessed through a qualitative investigation, with Group. reference to the monitoring of expected cash flows linked to the securitisation, entities Liquidity risk involved in the transaction and legal aspects. Many analyses are performed aimed at Finally, residual risk is evaluated on the basis of assessing the financial balance in both the qualitative opinions provided by different treasury items and at structural level. managers regarding the process of acquisition, The short-term liquidity risk is monitored by management, monitoring and enforcement of making daily analyses of the net treasury guarantees. position, liquidity reserves, and daily transactions at Group level. Analysis of the overall situation C. Risks of the insurance sector is carried out through the calculation of liquidity indicators (ratio and absolute value) and The operations of group insurance companies preparation of a maturity ladder. The ratios are subject to three distinct risk categories: measure the solidity of the treasury situation • insurance risks, which are generated according to decreasing safety margins: in fact, from the specific activities of the insurer, they compare the value of the net financial which acts as an intermediary able to position with the liquidity reserves on demand, determine an assignment and a securities that can be liquidated in the short-term subsequent reduction of the risk, through and strategic securities that can be liquidated. the professional centralised management The medium/long-term liquidity risk is analysed of the risks; by monitoring both asset and liability items • financial risks, generated by the maturing in the future and comparing them with management of the investment portfolios the growth objectives provided under strategic of the Companies, comprised of real planning. Furthermore, gap ratio indicators were estate properties, securities, receivables of determined on maturities over one year that set different types and other liquid assets; limits to the possibility of financing • operational risks, or possible losses, medium/long-term with short-term liabilities, including missed opportunities, originating which is in line with the approach of limiting from deficiencies and/or inadequate maturity transformation. A Contingency Plan was performances of processes and/or control also drawn up, approved by the Board of systems, due to both internal and external Directors, which defines and describes the reasons. intervention strategies and processes in stress and crisis situations, the reference Insurance risks result from the fact that organisational structure, risk indicators with the insurance policies are characterised by the non- associated trigger points and the related financial risk that an uncertain event may occur. calculation methods. The uncertainty concerns the likelihood, timing and the seriousness of the occurrence of that Reputational risk, strategic risk, risk on event. securitisations and residual risk Three sub-categories may be identified: The analysis of the risk is performed using assumed risk, reserve risk and reinsurance risk. special scorecards which assess risk exposure Assumed risk is linked to the underwriting of and control processes as well as the mitigation insurance policies, for which actuarial models instruments in place. In particular, reputational are used to determine pricing needs and risk is assessed through certain indicators related monitor claims. In addition, underwriting to a variety of stakeholders (customers, guidelines are issued along with assumption shareholders, bond holders and employees) and rules and limits for each individual risk category. is mitigated by providing organisational As regards the reserve risk, which represents the controls. Strategic risk is monitored through a possibility that the actual amounts of claims and

57 settlements to be paid would exceed the book effective management of investments are value of the insurance liabilities, comprised of stipulated with counterparties of high standing amounts registered under reserve; the Company and involve financial instruments with a high constantly monitors the development in the degree of liquidity. In any case, the Insurance reserves related to claims occurred but not yet Companies do not assume any proprietary paid and the changes in said reserves. For this positions, except for the underlying derivatives in purpose, independent actuaries are appointed structured financial instruments and for the to apply special actuarial methods. derivatives - with exclusively defensive purposes - that may be connected with the unit or index With regard to reinsurance risks, after the linked policies marketed by Carige Vita Nuova. definition of self-retention levels, arrangements The company manages and minimises the are made to underwrite cover contracts for the liquidity risk on the short-term through accurate main business lines, with leading market management of the incoming cash flows counterparts only, in order to mitigate the risk of (premiums and other amounts collected) linking insolvency. them to the outgoing cash flows (settlements and Financial risks affecting companies may be other payments), whereas for the long-term broken down into credit risks, liquidity risks and management an ALM (Asset Liability market risks. Management) system is being implemented, The companies manage the credit risk level which will allow a comparative analysis between through a careful and appropriate counterpart the incoming flows from investments and the selection policy. Credit risks are inherent in expected maturities of the liability commitments loans to customers, receivables from reinsurers, (at the current state of play the incoming cash in securities and other financial instruments flow component has been completed while the including derivative contracts. part relating to the outgoing cash flows is at the Loans to Customers are managed through the implementation phase). direct collection carried out by the The Insurance Companies control the market intermediaries, the payments of which, made on risk through sensitivity analysis and stress testing, a decadal basis, are subject to accurate also conducting impairment tests for the purpose supervision of the central and peripheral of identifying, where it may be objectively structures with the purpose of limiting the determined, the need for of value adjustments. insolvency risks. As regards specifically the activities of Carige As regards receivables from reinsurers, the Vita Nuova, in some cases there is a direct link counterparties are constantly monitored and the between investments and obligations towards exposure limits are reviewed annually, in the insured; in addition, certain types of Life compliance with the reinsurance policy outlined insurance policies are subject to the minimum by Management, in order to verify the credit guaranteed interest rate risk; said risk is standing of the reinsurer and any potential need monitored through specific Asset-Liability to carry out write-downs. Management (ALM) models. With regard to securities and other financial instruments, the Boards of Directors of the For the management of operational risks, Companies defined the limits of investment as the Risk Management function has been regards the individual issuer based on the nature implemented, with the definition of an and on the rating of the counterparty and on the operational information collection tool type of instruments purchased. (database) in which the company risks subject to Finally, as regards derivative instrument monitoring are assessed. They are attributed to transactions, the Insurance Companies operate different risk areas and company processes, and in compliance with the provisions of the in addition, assigned a risk owner. Supervisory Body and in accordance with the resolutions of the individual Boards of Directors. Derivative contracts for hedging and for the

58 This report shall be integrated with a summary SEGMENT REPORTING representation by customer segment of the income statement and balance-sheet values. In order to permit a significant time-based IFRS 8 – Operating Segments became effective comparison, the data for preceding periods are on 1 January 2009 completely replacing IAS 14 re-worked in line with current disclosure – Segment Reporting. The new standard focuses approaches. on the definition of the reporting segments according to management approach i.e. At the end of the first quarter of 2010 the required identification of operating segments income statement and balance sheet results of based on internal reports that were regularly the geographical operating sectors were as reviewed by the company's "chief operational follows: decision maker" in order to make strategic - the Liguria network showed a gross operating decisions: therefore, the distinction between the income of €109.7 million, in line with the primary and secondary sector disappears. result of the first quarter of 2009. Income from With reference to the Carige Group, the financial management and insurance business model has a twofold importance: amounted to €101.2 million (+2.9%) and territorial, given that the sales network is broken down into geographical areas, Liguria and operating costs amounted to €47.7 million (- outside Liguria (hereinafter Extra-Liguria); and 3.4% compared to the first quarter of 2009). that for the customer segment, considering that The cost/income ratio is equal to 43.5% the organisational and operational structure (45.1% at the end of Q1 2009). provides for specific service approaches (in With regard to volumes, loans to customers terms of products, prices and infrastructures) stood at €10,427 million and amounts owed aimed at the different types of customer. In accordance with the management approach, to customers totalled €7,901 million, +20.5% the bank chose the territory model as a and +29.1%, respectively compared to 31 model of reference for segment reporting, which March 2009). Securities in issue amounted to breaks down the results and the activities among 4,079 million (-7.7% compared to 31 March the following operating segments: 2009), while other financial liabilities remained - “Liguria”: operating customers at the branches stable and amounted to €11,371 million. of the Parent Bank located in said Overall, financial intermediation activities, geographical area, together with the results of amounting €23,350 million, recorded an Cassa di Risparmio di Savona, situated increase of 6.6% over 31 March 2009. prevalently in said area; - the network outside Liguria showed a gross - Outside the region of Liguria: operating operating income of €101.7 million, an customers at the branch banks of the Parent income from financial management and Bank located in the rest of the regions, insurance amounting to €84.3 million and together with the results of subsidiary banks operating costs for €63.3 million (-1.9% located in these geographic areas (Cassa di compared to the first quarter of 2009). These Risparmio di Carrara, Banca del Monte di figures are reflected in the cost/income ratio Lucca and Banca Cesare Ponti); (62.2%), +3.1% over the first quarter of 2009 - Other operating segments: includes the (59.1%). remaining customers and the other Group Concerning the trend in lending volumes, companies that perform asset management, loans to customers rose to €10,702 million insurance (life and non-life segments), (+5.9% compared to 31 March 2009), financial and instrumental activities; amounts owed to customers totalled €6,406 - “Netting-off and items not allocated”: million (+11.4% over 31 March 2009), and remaining sector explicitly provided for by securities in issue stood at €2,624 million (+18.8% compared to 31 March 2009). legislation to give evidence of the intra-group Other financial assets remained substantially netting-off and reconciliation items compared stable compared to previous periods and with the accounting figures. amounted to €7,849 million. Overall, financial

59 intermediation activities amounted to €16,878 shares in issue fall under this segment as well million, +8.4% compared to 31 March 2009. as financial liabilities measured at fair value - the other operating segments showed a gross (45.9% at Group level), amounting to €4,872 operating income of €27.8 million, an income million. Financial intermediation activities from financial management and insurance amounted to €9,511 million. amounting to €29.1 million and operating costs for €43.6 million. The highest amount of

60 Business geographic areas (figures in thousands of euro)

Outside Other Netting-off Liguria the region operating and other TOTAL of Liguria segments items

Gross operating income (1) 1st Q 2010 109,696 101,706 27,838 -1,621 237,619 year 2009 484,584 460,699 171,699 -43,458 1,073,524 1st Q 2009 109,376 109,048 43,681 -851 261,254

Net income from financial and insurance management (2)

1st Q 2010 101,245 84,311 29,083 -1,621 213,018 year 2009 451,688 374,604 160,939 -37,374 949,857 1st Q 2009 98,430 89,988 43,667 -1,040 231,045

Operating costs

1st Q 2010 -47,674 -63,270 -43,579 -2,076 -156,599 year 2009 -216,070 -277,241 -134,551 -8,882 -636,744 1st Q 2009 -49,364 -64,475 -40,307 -1,938 -156,084

Profit (Loss) from ordinary activities 1st Q 2010 53,571 21,041 -14,496 -3,697 56,419 year 2009 235,618 97,363 26,388 -46,256 313,113 1st Q 2009 49,066 25,513 3,360 -2,978 74,961

Cost income (%)

1st Q 2010 43.5 62.2 156.5 65.9 year 2009 44.6 60.2 78.4 59.3 1st Q 2009 45.1 59.1 92.3 59.7

Net interbank

31/3/2010 0 0 3,070,318 -1,776,151 1,294,167 31/12/2009 0 0 1,283,240 -630,322 652,918 31/3/2009 0 0 2,134,248 -1,071,659 1,062,588

Loans to customers 31/3/2010 10,427,349 10,701,869 1,713,307 -349,420 22,493,105 31/12/2009 9,943,033 10,451,643 2,723,131 -331,382 22,786,425 31/3/2009 8,652,485 10,104,060 1,914,707 -174,986 20,496,266

Amounts owed to customers (a) 31/3/2010 7,900,693 6,405,938 1,908,023 -1,354,488 14,860,166 31/12/2009 7,032,982 6,521,609 1,906,765 -399,681 15,061,675 31/3/2009 6,119,698 5,750,910 791,678 -467,825 12,194,461

Securities in issue and financial liabilities designated at fair value (3) (b) 31/3/2010 4,078,764 2,623,803 4,871,714 -957,012 10,617,269 31/12/2009 4,353,263 2,183,440 5,698,711 -1,601,310 10,634,104 31/3/2009 4,420,278 2,209,503 4,454,814 -833,451 10,251,144

Other financial assets (c) 31/3/2010 11,370,648 7,848,695 2,731,192 -872,269 21,078,266 31/12/2009 11,089,572 7,619,978 3,388,941 -872,865 21,225,626 31/3/2009 11,371,420 7,612,110 2,811,905 -700,038 21,095,397

Financial Intermediation Activities (FIA) (d= a+b+c) 31/3/2010 23,350,106 16,878,437 9,510,927 -3,183,769 46,555,701 31/12/2009 22,475,817 16,325,026 10,994,417 -2,873,855 46,921,405 31/3/2009 21,911,396 15,572,523 8,058,397 -2,001,314 43,541,002

(1) Including income from insurance management (2) Including profits from equity investments and disposal of investments. (3) Carige Vita Nuova liabilities, designated at fair value and relating to products for which risk is borne by the insured, are not included in this table.

61 Business geographic areas (% on total)

Outside Other Netting-off the Liguria operating and other TOTAL region segments items of

Gross operating income (1) 1st Q 2010 46.2 42.8 11.7 -0.7 100.0 year 2009 45.1 42.9 16.0 -4.0 100.0 1st Q 2009 41.9 41.7 16.7 -0.3 100.0

Net income from financial and insurance management (2) 1st Q 2010 47.5 39.6 13.7 -0.8 100.0 year 2009 47.6 39.4 16.9 -3.9 100.0 1st Q 2009 42.6 38.9 18.9 -0.4 100.0

Operating costs 1st Q 2010 30.4 40.4 27.8 1.4 100.0 year 2009 33.9 43.5 21.1 1.5 100.0 1st Q 2009 31.6 41.3 25.8 1.3 100.0

Profit (Loss) from ordinary activities 1st Q 2010 95.0 37.3 -25.7 -6.6 100.0 year 2009 75.3 31.1 8.4 -14.8 100.0 1st Q 2009 65.5 34.0 4.5 -4.0 100.0

Loans to customers 31/3/2010 46.4 47.6 7.6 -1.6 100.0 31/12/2009 43.6 45.9 12.0 -1.5 100.0 31/3/2009 42.2 49.3 9.3 -0.8 100.0

Amounts owed to customers (a) 31/3/2010 53.2 43.1 12.8 -9.1 100.0 31/12/2009 46.7 43.3 12.7 -2.7 100.0 31/3/2009 50.2 47.2 6.5 -3.9 100.0

Securities in issue and financial liabilities designated at fair value (3) (b)

31/3/2010 38.4 24.7 45.9 -9.0 100.0 31/12/2009 40.9 20.5 53.6 -15.0 100.0 31/3/2009 43.1 21.6 43.4 -8.1 100.0

Other financial assets (c) 31/3/2010 53.9 37.2 13.0 -4.1 100.0 31/12/2009 52.2 35.9 16.0 -4.1 100.0 31/3/2009 53.9 36.1 13.3 -3.3 100.0

Financial Intermediation Activities (FIA) (d= a+b+c) 31/3/2010 50.2 36.3 20.4 -6.9 100.0 31/12/2009 47.9 34.8 23.4 -6.1 100.0 31/3/2009 50.3 35.8 18.5 -4.6 100.0

Concerning customer segments, the Private and Concerning equity items, loans to customers Affluent segment recorded gross operating amounted to €10,658 million, an increase of income amounting to €52.4 million and 10.4% compared to 31 March 2009. operating costs for €25.9 million: these results The retail segment closed the first quarter of are reflected in a cost/income ratio of 49.5%. 2010 with gross operating income amounting to Taking into account the trend in lending €105.3 million, income from financial volumes, amounts due to customers amounted management and insurance amounting to to €6,171 Million, up by +22.4% compared to €90.9 million and operating costs for €82.2 31 March 2009, while other financial assets, in million: The cost/income ratio stood at 78.1%. line with previous periods, amounted to Loans to customers amounted to €8,084 €13,953 million. Overall, financial million, while amounts owed to customers rose intermediation activities amounted to €24,784 by 21.5% compared to 31 March 2009 and million, an increase of 4.5% compared to 31 amounted to €5,542 million. Other financial March 2009. assets, amounting to €2,920 million, fell by The corporate segment closed the first quarter of 6.4% compared to 31 March 2009. Overall, 2010 with gross operating income amounting to Financial Intermediation Activities rose by 8% €53.4 million, income from financial and stood at €9,824 million. management and insurance amounting to €42.1 million and operating costs for €10.2 million. The cost/income ratio stood at 19.2%.

63 Customer segments (Figures in thousands of euro)

Private Total Total and customer financial Affluent Corporate Retail segments statements

Gross operating income (1) 1st Q 2010 52,410 53,429 105,281 211,120 237,619 year 2009 216,263 234,514 445,249 896,026 1,073,524 1st Q 2009 47,520 58,416 106,870 212,806 261,254

Net income from financial and insurance management (2)

1st Q 2010 52,433 42,056 90,901 185,390 213,018 year 2009 215,917 169,149 391,261 776,327 949,857 1st Q 2009 47,344 45,009 86,911 179,264 231,045

Operating costs

1st Q 2010 -25,930 -10,240 -82,201 -118,371 -156,599 year 2009 -94,896 -47,528 -329,654 -472,078 -636,744 1st Q 2009 -25,937 -11,936 -79,727 -117,600 -156,084

Profit (Loss) from ordinary activities

1st Q 2010 26,503 31,816 8,700 67,019 56,419 year 2009 121,021 121,621 61,607 304,249 313,113 1st Q 2009 21,407 33,073 7,184 61,664 74,961

Number of customers

1st Q 2010 175,761 17,924 897,353 1,091,038 1,166,377 year 2009 187,433 18,395 1,053,238 1,259,066 1,301,492 1st Q 2009 172,443 17,163 859,520 1,049,126 1,085,360

Profit per customer (figures in euro) 1st Q 2010 150.8 1,775.0 9.7 year 2009 645.7 6,611.6 58.5 1st Q 2009 124.1 1,927.0 8.4

Cost income (%)

1st Q 2010 49.5 19.2 78.1 65.9 year 2009 43.9 20.3 74.0 59.3 1st Q 2009 54.6 20.4 74.6 59.7

Loans to customers 31/3/2010 529,288 10,657,980 8,083,749 19,271,017 22,493,105 31/12/2009 536,732 10,684,451 8,398,612 19,619,795 22,786,425 31/3/2009 507,990 9,653,080 8,221,759 18,382,829 20,496,266

Amounts owed to customers (a) 31/3/2010 6,171,073 1,612,690 5,542,278 13,326,041 14,860,166 31/12/2009 6,089,861 1,818,370 5,806,205 13,714,436 15,061,675 31/3/2009 5,039,893 1,305,269 4,560,919 10,906,081 12,194,461

Securities in issue and financial liabilities designated at fair value (3) (b)

31/3/2010 4,659,347 138,293 1,362,306 6,159,946 10,617,269 31/12/2009 4,904,831 111,557 1,456,070 6,472,458 10,634,104 31/3/2009 4,905,062 130,636 1,419,679 6,455,377 10,251,144

Other financial assets (c) 31/3/2010 13,953,353 792,945 2,919,701 17,665,999 21,078,266 31/12/2009 13,445,963 735,922 3,022,310 17,204,195 21,225,626 31/3/2009 13,777,162 912,347 3,117,694 17,807,203 21,095,397

Financial Intermediation Activities (FIA) (d = a + b + c) 31/3/2010 24,783,773 2,543,928 9,824,285 37,151,986 46,555,701 31/12/2009 24,440,655 2,665,850 10,284,584 37,391,089 46,921,405 31/3/2009 23,722,116 2,348,252 9,098,293 35,168,661 43,541,002

THE PARENT BANK: FINANCIAL STATEMENTS AND EXPLANATORY NOTES

Financial highlights

Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 BALANCE SHEET (1) Total assets 31,495,175 29,786,703 26,365,563 5.7 19.5 Funding 25,561,284 24,098,953 20,926,184 6.1 22.1 - Direct Deposits (a) 24,115,554 23,224,989 20,030,431 3.8 20.4 * Amounts owed to customers 13,965,365 13,174,643 10,584,440 6.0 31.9 * Securities in issue 9,464,098 9,438,159 8,864,713 0.3 6.8 * Liabilities at fair value 686,091 612,187 581,278 12.1 18.0 - Amounts owed to banks 1,445,730 873,964 895,753 65.4 61.4 - Indirect deposits (b) 17,717,401 18,043,855 17,997,018 -1.8 -1.6 - Assets under management (2) 7,795,004 7,427,002 6,647,876 5.0 17.3 - Assets in custody (2) 9,922,397 10,616,853 11,349,142 -6.5 -12.6 Financial Intermediation Activities (FIA) (a+b) 41,832,955 41,268,844 38,027,449 1.4 10.0 Investments 27,687,872 26,010,763 22,542,114 6.4 22.8 - Loans to customers (3) 19,377,792 19,637,247 17,506,200 -1.3 10.7 - Loans to banks (3) (4) 2,629,214 1,306,428 1,413,178 … 86.0 - Securities portfolio 5,680,866 5,067,088 3,622,736 12.1 56.8 Capital and reserves 3,901,530 3,728,496 3,652,933 4.6 6.8

Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 INCOME STATEMENT (1) Gross operating income 181,019 864,002 208,739 -13.3 Net income from financial management 159,050 769,260 179,104 -11.2 Operating profit from ordinary activities before taxes 38,396 273,581 55,978 -31.4 Profit for the period 22,012 201,103 35,779 -38.5

RESOURCES (5) Number of branches 534 534 534 - - Staff 4,521 4,557 4,552 -0.8 -0.7 FINANCIAL RATIOS

Operating costs / Gross operating income 66.65% 57.37% 58.99% Operating profit from ordinary activities before taxes /Capital and reserves 0.98% 7.34% 1.53% ROE 0.56% 5.39% 0.98% ROE (6) 0.69% 6.70% 1.19% ROAE (7) 0.58% 5.56% 1.00% ROAE (6) (7) 0.71% 6.86% 1.22% RISK ASSETS AND REGULATORY RATIOS Total Risk-Weighted Assets (1) 17,633,370 17,366,060 16,973,879 1.5 3.9 Core Tier 1/Total Risk-Weighted Assets 8.69% 8.83% 8.76% Tier 1 capital / RWA 9.60% 9.75% 9.70%

Regulatory capital including Tier 3 capital/Total weighted assets 11.90% 12.04% 11.75% (1) Figures in thousands of euro (2) During the year a review of the financial investment processes related to part of the securities portfolio of the Group insurance companies has been carried out. In compliance with this review the investment management agreements signed between the Parent Bank and the insurance subsidiaries have been cancelled and replaced by an advisory agreement, appointed to Carige AM SGR. In light of this, amounts pertaining to the insurance companies have been reclassified from assets under management to assets in custody. The aggregates for the previous periods have been adequately reclassified to allow a homogeneous comparison as at 31/12/2009. (3) Before value adjustments. (4) Net of debt securities classified as L&R (5) Statistics of the end of period. (6) Net of the AFS reserve established against the revaluation of the equity investment in the Bank of Italy. (7) Net profit on average shareholders' equity (Return On Average Equity).

65 1. Financial statements as at 31 March 2010

BALANCE SHEET (figures in thousands of euro)

ASSETS Change % 3/10 3/10 31/3/10 31/12/09 31/3/09 12/09 3/09 10 -CASH AND CASH EQUIVALENTS 207,390 241,490 197,787 (14.1) 4.9 20 -FINANCIAL ASSETS HELD FOR TRADING 736,140 725,117 753,604 1.5 (2.3) 40 -AVAILABLE-FOR-SALE FINANCIAL ASSETS 4,136,986 3,514,450 1,645,089 17.7 … 50 -FINANCIAL ASSETS HELD TO MATURITY - - 420,143 … (100.0) 60 -LOANS TO BANKS 3,443,430 2,129,509 2,202,781 61.7 56.3 70 -LOANS TO CUSTOMERS 18,986,493 19,272,873 17,187,739 (1.5) 10.5 80 -HEDGING DERIVATIVES 104,806 72,885 71,126 43.8 47.4 100 -EQUITY INVESTMENTS 1,069,463 1,061,688 1,037,145 0.7 3.1 110 -TANGIBLE ASSETS 653,728 655,057 576,923 (0.2) 13.3 120 -INTANGIBLE ASSETS 1,481,722 1,483,235 1,468,858 (0.1) 0.9 including: - goodwill 1,415,493 1,415,493 1,415,481 - 0.0 130 -TAX ASSETS 204,821 197,587 232,379 3.7 (11.9) a) current 47,768 48,676 47,932 (1.9) (0.3) b) advanced 157,053 148,911 184,447 5.5 (14.9) 150 -OTHER ASSETS 470,196 432,812 571,989 8.6 (17.8) TOTAL ASSETS 31,495,175 29,786,703 26,365,563 5.7 19.5

LIABILITIES Change % 03/10 03/10 31/3/10 31/12/09 31/03/09 12/09 03/09 10 -AMOUNTS OWED TO BANKS 1,445,730 873,964 895,753 65.4 61.4 20 -AMOUNTS OWED TO CUSTOMERS 13,965,365 13,174,643 10,584,440 6.0 31.9 30 -SECURITIES IN ISSUE 9,464,098 9,438,159 8,864,713 0.3 6.8 40 -FINANCIAL LIABILITIES FROM TRADING 157,335 152,261 146,206 3.3 7.6 50 -FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE 686,091 612,187 581,278 12.1 18.0 60 -HEDGING DERIVATIVES 413,067 276,657 145,529 49.3 … 80 -TAX LIABILITIES 245,733 217,875 179,610 12.8 36.8 (a) current 68,693 43,071 26,902 59.5 … (b) deferred 177,040 174,804 152,708 1.3 15.9 100 -OTHER LIABILITIES 816,910 726,153 877,328 12.5 (6.9) 110 -STAFF TERMINATION INDEMNITY 65,724 68,317 70,940 (3.8) (7.4) 120 -PROVISIONS FOR RISKS AND CHARGES: 311,580 316,888 331,054 (1.7) (5.9) a) pensions and similar obligations 283,340 286,734 300,829 (1.2) (5.8) b) other provisions 28,240 30,154 30,225 (6.3) (6.6) 130 -VALUATION RESERVES 558,301 600,978 379,578 (7.1) 47.1 150 -CAPITAL INSTRUMENTS 15,785 1,178 1,179 …… 160 -RESERVES 524,401 323,298 468,618 62.2 11.9 170 -ADDITIONAL PAID-IN CAPITAL 1,012,742 1,012,742 1,013,259 - (0.1) 180 -CAPITAL 1,790,301 1,790,300 1,790,299 0.0 0.0 200 -PROFIT (LOSS) FOR THE PERIOD 22,012 201,103 35,779 (89.1) (38.5) TOTAL LIABILITIES 31,495,175 29,786,703 26,365,563 5.7 19.5

66 INCOME STATEMENT (figures in thousands of euro) Change % 3/10 31/3/10 31/12/09 31/3/09 3/09 10 - INTEREST INCOME AND SIMILAR REVENUES 201,024 942,192 274,845 (26.9) 20 - INTEREST EXPENSES AND SIMILAR CHARGES (89,626) (411,867) (133,061) (32.6) 30 -NET INTEREST INCOME 111,398 530,325 141,784 (21.4) 40 - COMMISSION INCOME 66,361 257,998 58,430 13.6 50 - COMMISSION EXPENSES (6,657) (31,234) (6,935) (4.0) 60 -NET COMMISSIONS 59,704 226,764 51,495 15.9 70 - DIVIDENDS AND OTHER SIMILAR REVENUES 15 61,430 21 (28.6) 80 - NET INCOME FROM TRADING ACTIVITIES 4,077 8,573 (6,312) … 90 - NET INCOME FROM HEDGING ACTIVITIES 263 2,316 2,079 (87.3) 100 - PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 3,441 35,333 18,049 (80.9) a) loans 218 2,412 1,894 (88.5) b) available-for-sale financial assets 845 21,308 4,320 (80.4) d) financial liabilities 2,378 11,613 11,835 (79.9) 110 - NET VALUE ADJUSTMENT ON FINANCIAL ASSETS AND LIABILITIES DESIGNATED AT FAIR VALUE 2,121 (739) 1,623 30.7 120 -GROSS OPERATING INCOME 181,019 864,002 208,739 (13.3) 130 - NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT OF: (21,969) (94,742) (29,635) (25.9) a) loans (22,656) (83,323) (28,943) (21.7) b) available-for-sale financial assets 36 (10,997) -522 … d) other financial assets 651 (422) (170) … 140 -NET INCOME FROM FINANCIAL MANAGEMENT 159,050 769,260 179,104 (11.2) 150 - ADMINISTRATIVE COSTS: (127,307) (526,092) (129,829) (1.9) a) staff costs (74,688) (307,525) (74,971) (0.4) b) other administrative costs (52,619) (218,567) (54,858) (4.1) 160 - NET PROVISIONS FOR RISKS AND CHARGES (172) (3,302) (1,636) (89.5) 170 - DEPRECIATION OF TANGIBLE ASSETS (3,919) (15,540) (3,532) 11.0 180 - AMORTIZATION OF INTANGIBLE ASSETS (5,389) (18,723) (3,856) 39.8 190 - OTHER OPERATING EXPENSES AND REVENUES 16,132 68,018 15,727 2.6 200 - OPERATING COSTS (120,655) (495,639) (123,126) (2.0) 210 - PROFIT (LOSS) FROM EQUITY INVESTMENTS - (52) - … 240 - PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS 112- … 250 -OPERATING PROFIT (LOSS) FROM ORDINARY ACTIVITIES BEFORE TAXES 38,396 273,581 55,978 (31.4)

260 - INCOME TAXES FOR THE PERIOD (16,384) (72,478) (20,199) (18.9) 270 - PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 22,012 201,103 35,779 (38.5) 290 -PROFIT (LOSS) FOR THE PERIOD 22,012 201,103 35,779 (38.5)

INCOME STATEMENT - QUARTERLY RESULTS (figures in thousands of euro) 4th quarter 31/3/10 31/3/09 CHANGE 2009 10 - INTEREST INCOME AND SIMILAR REVENUES 201,024 274,845 (73,821) 208,610 20 - INTEREST EXPENSES AND SIMILAR CHARGES (89,626) (133,061) 43,435 (88,358) 30 -NET INTEREST INCOME 111,398 141,784 (30,386) 120,252 40 - COMMISSION INCOME 66,361 58,430 7,931 61,609 50 - COMMISSION EXPENSES (6,657) (6,935) 278 (9,879) 60 -NET COMMISSIONS 59,704 51,495 8,209 51,730 70 - DIVIDENDS AND OTHER SIMILAR REVENUES 15 21 (6) 5,051 80 - NET INCOME FROM TRADING ACTIVITIES 4,077 (6,312) 10,389 1,707 90 - NET INCOME FROM HEDGING ACTIVITIES 263 2,079 (1,816) 283 100 - PROFIT (LOSS) ON DISPOSAL OR REPURCHASE OF: 3,441 18,049 (14,608) 19,437 a) loans 218 1,894 (1,676) 709 b) available-for-sale financial assets 845 4,320 (3,475) 18,600 d) financial liabilities 2,378 11,835 (9,457) 128 110 - NET VALUE ADJUSTMENT ON FINANCIAL ASSETS AND LIABILITIES DESIGNATED AT FAIR VALUE 2,121 1,623 498 437 120 -GROSS OPERATING INCOME 181,019 208,739 (27,720) 198,897 130 - NET VALUE ADJUSTMENTS DUE TO IMPAIRMENT OF: (21,969) (29,635) 7,666 (41,091) a) loans (22,656) (28,943) 6,287 (31,934) b) available-for-sale financial assets 36 (522) 558 (8,856) d) other financial assets 651 (170) 821 (301) 140 -NET INCOME FROM FINANCIAL MANAGEMENT 159,050 179,104 (20,054) 157,806 150 - ADMINISTRATIVE COSTS: (127,307) (129,829) 2,522 (138,636) a) staff costs (74,688) (74,971) 283 (79,464) b) other administrative costs (52,619) (54,858) 2,239 (59,172) 160 - NET PROVISIONS FOR RISKS AND CHARGES (172) (1,636) 1,464 (749) 170 - DEPRECIATION OF TANGIBLE ASSETS (3,919) (3,532) (387) (4,485) 180 - AMORTIZATION OF INTANGIBLE ASSETS (5,389) (3,856) (1,533) (6,085) 190 - OTHER OPERATING EXPENSES AND REVENUES 16,132 15,727 405 19,519 200 - OPERATING COSTS (120,655) (123,126) 2,471 (130,436) 210 - PROFIT (LOSS) FROM EQUITY INVESTMENTS - - - - 240 - PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS 1- 1 - 250 -OPERATING PROFIT (LOSS) FROM ORDINARY ACTIVITIES BEFORE TAXES 38,396 55,978 (17,582) 27,370 260 - INCOME TAXES FOR THE PERIOD (16,384) (20,199) 3,815 (5,505) 270 - PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER TAXES 22,012 35,779 (13,767) 21,865 290 -PROFIT (LOSS) FOR THE PERIOD 22,012 35,779 (13,767) 21,865

STATEMENT OF COMPREHENSIVE INCOME

31/3/10 31/12/09 31/3/09 Change 3/10 - 3/09 absolute % 10 PROFIT (LOSS) FOR THE PERIOD 22,012 201,103 35,779 (13,767) (38) Other income components after taxes 20 Available-for-sale financial assets (16,646) 150,356 (57,932) 41,286 (71) 30 Tangible assets 40 Intangible assets 50 Foreign investment hedge 60 Cash flow hedge (26,031) (1,834) (14,946) (11,085) 74 70 Currency differences 80 Non-current assets held for sale 90 Actuarial profits (losses) on defined benefit plans 100 Share of the valuation reserves of equity investments designated at equity 0… 110 Total other income components after taxes (42,677) 148,522 (72,878) 30,201 (41) 120 TOTAL PROFITABILITY (Item 10+110) (20,665) 349,625 (37,099) 16,434 (44) Figures in thousands of euro

STATEMENT OF CHANGES IN SHAREHOLDERS’(figures EQUITY in thousands of euro)

Allocation of profits/losses Changes in the period for the previous year

Transactions on shareholders’ equity Reserves as at 31/3/2010 at as Balance as at 1/1/2010 at as Balance instrum ents Changes in reserves Changes in Balance as at 31/12/2009 at as Balance of dividends of Stock options Stock Change in opening balances opening in Change New sharesissued Changes in capital capital Changes in Total profitability for the period Shareholders’ equity as at 31/3/2010 at as equity Shareholders’ Own shares purchased Own shares Own shares derivatives Own shares Dividends and other allocations and other Dividends Extraordinary distribution distribution Extraordinary Capital:1,790,300 1,790,300 - - - - 1 ------1,790,301 a) ordinary shares 1,615,990 1,615,990 - - - - 1 ------1,615,991 b) other shares 174,310 174,310 ------174,310 Additional paid-in capital1,012,742 1,012,742 ------1,012,742 Reserves: 323,298 323,298 - 201,103 ------524,401 a) profits 292,978 292,978 - 201,103 ------494,081 b) other 30,320 - 30,320 ------30,320 Valuation reserves: 600,978 600,978 ------(42,677) 558,301 Capital instruments 1,178 1,178 ------14,607 - - - 15,785 Own shares ------Profit (Loss) for the period 201,103 201,103 - (201,103) ------22,012 22,012 Shareholders' equity3,929,600 3,929,600 - - - - 1 - - 14,607 - - (20,665) 3,923,542 Figures in thousands of Euro

Allocation of profits/losses Changes in the period for the previous year

Transactions on shareholders’ equity Reserves Balance as at 1/1/2009 at as Balance as at 31/12/2009 at as instrum ents Changes in reserves Changes in Balance as at 31/12/2008 at as Balance of dividends of Stock options Stock Change in opening balances opening in Change New issued shares Changes in capital capital Changes in Total profitability for theperiod Own shares derivatives Own shares Own shares purchased Own shares Dividends and other allocations other and Dividends Shareholders’ equity as at 31/12/2009 at as equity Shareholders’ Extraordinary distribution distribution Extraordinary Capital: 1,790,299 1,790,299 - - - - 1 ------1,790,300 a) ordinary shares 1,615,033 1,615,033 - - - - 957 ------1,615,990 b) other shares 175,266 175,266 - - - - (956) ------174,310 Additional paid-in capital 1,013,259 1,013,259 - - - - (517) ------1,012,742 Reserves: 245,149 245,149 - 76,759 1,391 ------323,298 a) profits 216,219 216,219 - 76,759 ------292,978 b) other 28,929 - 28,929 - - 1,391 ------30,320 Valuation reserves: 452,456 452,456 ------148,522 600,978 Capital instruments 1,179 1,179 - - - - (1) ------1,178 Own shares ------Profit (Loss) for the period 223,469 223,469 - (76,759) (146,710) ------201,103 201,103 Shareholders' equity 3,725,810 3,725,810 - - (146,710) 1,391 (517) - - - - - 349,625 3,929,599 Figures in thousands of euro

Allocation of profits/losses Changes in the period for the previous year

Transactions on shareholders’ equity Reserves as at 31/3/2009 at as Balance as at 1/1/2009 at as Balance instruments Changes in reserves in Changes Balance as at 31/12/2008 at as Balance of dividends of Stock options Stock Change in opening balances opening in Change New shares issued Changes in capital capital in Changes Total profitability for the period period the for profitability Total Shareholders’ equity as at 31/3/2009 at as equity Shareholders’ Own shares purchased Own shares derivatives Own shares Dividends and other allocations other and Dividends Extraordinary distribution distribution Extraordinary Capital: 1,790,299 1,790,299 ------1,790,299 a) ordinary shares 1,615,033 1,615,033 ------1,615,033 b) other shares 175,266 175,266 ------175,266 Additional paid-in capital 1,013,259 1,013,259 ------1,013,259 Reserves: 245,149 245,149 - 223,469 ------468,618 a) profits 216,219 216,219 - 223,469 ------439,689 b) other 28,929 -28,929 ------28,929 Valuation reserves: 452,456 452,456 ------(72,878) 379,578 Capital instruments 1,179 - 1,179 ------1,179 Own shares ------Profit (Loss) for the period 223,469 223,469 - (223,469) ------35,779 35,779 Shareholders' equity 3,725,810 3,725,810 ------(37,099) 3,688,712 Figures in thousands of euro

72 CASH FLOW STATEMENT Direct method

Amount

A. OPERATING ACTIVITIES 31/3/10 31/12/09 31/3/09 1. Management 71,073 293,609 35,536 - interest income received (+) 177,743 931,756 226,964 - interest expenses paid (-) (81,683) (437,517) (149,206) - dividends and similar revenues (+) 8 11,167 21 - net commissions (+/-) 59,704 226,764 51,495 - staff costs (-) (62,815) (260,705) (63,321) - other costs (-) (67,353) (270,538) (69,624) - other revenues (+) 45,635 135,418 39,683 - taxes and duties (-) (166) (42,736) (476) 2. Liquidity generated/absorbed by financial assets (1,679,041) (2,887,684) 90,124 - financial assets held for trading (10,149) (56,747) (91,060) - available-for-sale financial assets (537,018) (1,244,959) (145,600) - loans to customers 301,293 (1,762,674) 424,395 - loans to banks: at sight (108,934) (150,207) 52,764 - loans to banks: other loans (1,201,181) (178,412) (450,954) - other assets (123,052) 505,315 300,579 3. Cash generated/absorbed by financial liabilities 1,588,102 2,902,014 (85,178) - amounts owed to banks: at sight 1,146,162 (188,444) (379,340) - amounts owed to banks: other (575,591) (18,331) 191,858 - amounts owed to customers 789,995 2,734,513 149,926 - securities in issue 60,795 783,519 217,431 - financial liabilities from trading 14,798 37,939 22,575 - financial liabilities designated at fair value 66,986 11,483 (6,159) - other liabilities 84,957 (458,665) (281,469) Net liquidity generated/absorbed by operating activities (19,866) 307,939 40,482 B. INVESTING ACTIVITIES 1. Liquidity generated by 8 67,223 - - equity investment disposals - (52) - - dividends received on equity investments 7 50,263 - - disposal/reimbursement of financial assets held to maturity - 17,000 - - tangible asset disposals 1 12 - 2. Liquidity absorbed by (14,242) (224,801) (80,534) - equity investment acquisitions (7,775) (160,994) (74,994) - tangible asset acquisitions (2,591) (28,598) 73 - intangible asset acquisitions (3,876) (35,209) (5,613) - business unit acquisitions - - - Net liquidity generated/absorbed by investing activities (14,234) (157,578) (80,534) C. FUNDING ACTIVITIES - own share issues/acquisitions - - - - additional paid-in capital - - - - dividend distribution and others - (146,710) - Net liquidity generated/absorbed by funding activities - (146,710) - NET LIQUIDITY GENERATED/ABSORBED DURING THE PERIOD (34,100) 3,651 (40,052) - KEY: (+) generated, (-) absorbed

RECONCILIATION

Amount

Balance sheet items 31/3/10 31/12/09 31/3/09

Cash and cash equivalents at the beginning of the period 241,490 237,839 237,839

Total net liquidity generated/absorbed during the period (34,100) 3,651 (40,052)

Cash and cash equivalents at period end 207,390 241,490 197,787 Figures in thousands of euro

2. Intermediation activities

It should be pointed out that, effective from 2006 The aggregate of the Financial (Law 262/2005, Provisions for the protection of Intermediation Activities on behalf of the savings and regulation of financial markets), the clients (FIA) – direct and indirect deposits – Carige Group introduced an organisational totalled €41,833 million, up by 1.4% and 10% in change which reserves the role of bond issuer for the three and twelve and month period, the Parent Bank, and entrusts the activity of respectively. placement to all Group Banks; subsequently, to Direct deposits amounted to €24,115.6 avoid problems connected with maturity million, an increase of 3.8% in three months and transformation, Carige’s Board of Directors 20.4% in twelve months; indirect deposits resolved the hedging of the medium/long-term totalled €17,717.4 million, a decrease from the financial requirements of subsidiary banks through start of the year (-1.8%) and down by -1.6% from the subscription of bonds issued by the subsidiary. March 2009. It is composed of assets under For the Parent Bank, said operation determined a management for 44% and assets under custody re-composition of FIA in favour of direct deposits for 56% and an increase in the volume of the securities portfolio.

FINANCIAL INTERMEDIATION ACTIVITIES (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 Total (A+B) 41,832,955 41,268,844 38,027,449 1.4 10.0 Direct deposits (A) 24,115,554 23,224,989 20,030,431 3.8 20.4 % on Total 57.6% 56.3% 52.7% Indirect deposits (B) 17,717,401 18,043,855 17,997,018 -1.8 -1.6 % on Total 42.4% 43.7% 47.3% - Assets under management (1) 7,795,004 7,427,002 6,647,876 5.0 17.3 % on Total 18.6% 18.0% 17.5% % on Indirect deposits 44.0% 41.2% 36.9% - Assets in custody (1) 9,922,397 10,616,853 11,349,142 -6.5 -12.6 % on Total 23.7% 25.7% 29.8% % on Indirect deposits 56.0% 58.8% 63.1% (1) Financial investment processes related to part of the securities portfolio of the Group insurance companies have been reviewed during the year . In compliance with this review the investment management agreements signed between the Parent Bank and the insurance subsidiaries have been cancelled and replaced by an advisory agreement, appointed to Carige AM SGR. In light of this, amounts pertaining to the insurance companies have been reclassified from assets under management to assets in custody. The aggregates for the previous periods have been adequately reclassified to allow a homogeneous comparison as at 31/12/2009.

Total funding, which includes direct deposits “contoconto”. Medium/long-term deposits, equal from customers (€24,115.6 million) and banks to €10,342.3 million, rose by 1.1% in three (€1,445.7 million), amounted to €25,561.3 months and 7.5% in twelve months, accounting million, up by 6.1% from the beginning of the for 42.9% of the total (44.1% at December and year and by 22.1% from March 2009. 48% in March 2009). Within direct deposits, Direct deposits increased by 3.8% from the amounts owed to customers totalled €13,965.4 beginning of the year and by 20.4% from March million (+6% and +31.9% over three and twelve 2009. The short-term component, at €13,773.2 months, respectively), especially driven by the million, increased by 6% over three months and performance of current accounts and free deposits 32.3% over twelve months, driven, in particular, and repurchase agreements, whereas time by the success of the new on-line deposit account deposits fell. Securities in issue were represented

74 almost entirely by bonds (+0.4% in three months 12.1% over December 2009 and 18% against and +8% in twelve months), for a total of March 2009. €9,464.1 million (+0.3% and +6.8% in three The amounts owed to banks (€1,445.7 and twelve months, respectively). Liabilities million) rose by 65.4% in the three month period measured at fair value (€686.1 million) rose by and by 61.4% from March 2009.

FUNDING (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 Total (A+B) 25,561,284 24,098,953 20,926,184 6.1 22.1 Direct deposits (A) 24,115,554 23,224,989 20,030,431 3.8 20.4 Amounts owed to customers 13,965,365 13,174,643 10,584,440 6.0 31.9 current accounts and free deposits 13,210,722 12,662,763 9,986,810 4.3 32.3 repurchase agreements 331,500 68,062 94,131 … … term deposits 11,776 15,988 32,493 -26.3 -63.8 loans 1,958 1,952 1,982 0.3 -1.2 funds managed on behalf of third pa - - 129 … -100.0 other deposits 409,409 425,878 468,895 -3.9 -12.7 Securities in issue 9,464,098 9,438,159 8,864,713 0.3 6.8 bonds 9,327,104 9,285,643 8,633,545 0.4 8.0 other securities 136,994 152,516 231,168 -10.2 -40.7 Liabilities at fair value 686,091 612,187 581,278 12.1 18.0 bonds 686,091 612,187 581,278 12.1 18.0 short term 13,773,217 12,990,571 10,413,695 6.0 32.3 % on Total 57.1 55.9 52.0 medium-long term 10,342,337 10,234,418 9,616,736 1.1 7.5 % on Total 42.9 44.1 48.0 Amounts owed to banks (B) 1,445,730 873,964 895,753 65.4 61.4 Deposits of central banks 23,957 24,127 - -0.7 … Current accounts and free deposits 142,625 145,297 381,599 -1.8 -62.6 Term deposits 332,971 324,422 75,711 2.6 … Repurchase agreements 347,501 24,660 145,909 … … Loans 598,676 355,458 292,534 68.4 …

Indirect deposits totalled €17,717.4 million, a asset management amounted to €465.1 million decrease for the quarter (-1.8%) and over the (+13.4% in three months, and +12.5% in twelve twelve month period (-1.6%). Assets under months), and bank-insurance products totalled management amounted to €7,795 million, an €3,224.6 million (+5.1% in three months and increase over December 2009 (+5%) and March +20.2% in twelve months). 2009 (+17.3%). Assets under custody stood at As regards assets in custody, government €9,922.4 million, down against December 2009 bonds increased by 30.9% in the three month (-6.5%) and March 2009 (-12.6%). period to €3,483 million, and 41.1% on a year- Concerning assets under management, on-year basis. The other securities (€6,439.4 there was a rise in mutual funds, which amounted million) increased compared to the end of the to €4,105.2 million (+3.9% and +15.6% in the year (+15.5%) and compared to March 2009 three and twelve-month periods respectively), (+18.5%).

75 INDIRECT DEPOSITS (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 Total (A+B) 17,717,401 18,043,855 17,997,018 -1.8 -1.6

Assets under management (A) 7,795,004 7,427,002 6,647,876 5.0 17.3 Mutual funds 4,105,222 3,949,354 3,551,849 3.9 15.6 Asset management (1) 465,137 410,280 413,484 13.4 12.5 Bancassurance products (1) 3,224,645 3,067,368 2,682,543 5.1 20.2

Assets in custody (B) 9,922,397 10,616,853 11,349,142 -6.5 -12.6 Government securities (1) 3,482,959 5,042,230 5,914,519 -30.9 -41.1 Other (1) 6,439,438 5,574,623 5,434,623 15.5 18.5 (1) Financial investment processes related to part of the securities portfolio of the Group insurance companies have been reviewed during the year . In compliance with this review the investment management agreements signed between the Parent Bank and the insurance subsidiaries have been cancelled and replaced by an advisory agreement, appointed to Carige AM SGR. In light of this, amounts pertaining to the insurance companies have been reclassified from assets under management to assets in custody. The aggregates for the previous periods have been adequately reclassified to allow a homogeneous comparison as at 31/12/2009.

Loans to customers, net of value adjustments twelve-month period) representing 4.2% of total for €484.9 million, amounted to €18,892.9 loans, greater than the 3.7% in December and million, down by 1.5% compared to December 3.4% in March 2009. 2009 (+10.6% in the twelve-month period). The It should be pointed out that, in relation to the total amount came to €19,377.8 million before incorporation of Creditis Servizi Finanziari SpA value adjustments, showing a 1.3% decrease in (Carige Group company specialised in consumer the three-month period and a 10.7% increase in credit), as of 1 July 2008, the Bank started to the twelve-month period. provide personal loans through said Company The short-term component (21.3% of total) and granted loans totalling €39.8 million (€287.7 amounted to €4,127.1 million, a decrease in million from the start of activities). When taking three months (-10.7%) but an increase of 2.2% in into account loans granted through Creditis, the twelve months. In particular, current accounts performance in consumer credit showed a positive totalled €2,319.4 million (-5.6% in three months trend (+3.3% in three months and +20% in and +2% over the twelve-month period). twelve months). The medium/long-term component, amounted to Net of value adjustments for €0.9 million, loans €14,444.1 million (+1.1% in three years and to banks amounted to €2,628.3 million, an +12.2% in twelve months). Loans amounted to increase compared to €1,305.6 million in €10,426.5 million (+1.9% from December and December and €1,412.4 million in March 2009. +7.7% from March 2009). Amounts for new The net interbank position (difference personal loans rose in the first quarter compared between loans and amounts owed to banks) to the same period of last year: €150.1 compared showed a net credit position of €1,183.5 million, to €107.8 million. compared to €432.5 million in December and Bad loans amounted to €806.6 million (+10.9% €517.4 million in March 2009. from the beginning of the year and +34.5% in the

76 LOANS (1) (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 Total (A+B) 21,521,242 20,481,378 18,499,810 5.1 16.3 Loans to customers (A) 18,892,901 19,175,823 17,087,410 -1.5 10.6 -nominal value (2) 19,377,792 19,637,247 17,506,200 -1.3 10.7 current accounts 2,319,411 2,455,997 2,273,176 -5.6 2.0 repurchase agreements 106,975 482,145 - -77.8 … mortgages (3) 10,426,492 10,227,382 9,676,934 1.9 7.7 credit cards, personal loans and salary-backed loans 229,449 252,878 335,724 -9.3 -31.7 leasing 806,048 810,255 814,799 -0.5 -1.1 factoring 137,379 141,119 127,303 -2.7 7.9 other loans 3,608,445 3,609,557 3,119,317 -0.0 15.7 impaired assets (3) 1,743,593 1,657,914 1,158,947 5.2 50.4

-short term 4,127,072 4,623,925 4,038,414 -10.7 2.2 % on nominal value 21.3 23.5 23.1 -medium/long term 14,444,076 14,285,927 12,868,200 1.1 12.2 % on nominal value 74.5 72.7 73.5 - Bad loans 806,644 727,395 599,586 10.9 34.5 % on nominal value 4.2 3.7 3.4

-Value adjustments (-) 484,891 461,424 418,790 5.1 15.8

Loans to banks (B) 2,628,341 1,305,555 1,412,400 … 86.1 -nominal value (2) 2,629,214 1,306,428 1,413,178 … 86.0 compulsory reserves 411,648 220,045 283,295 87.1 45.3 other loans to central banks - - - … … current accounts and free deposits 376,275 267,007 67,994 40.9 … term deposits 370,426 539,216 795,559 -31.3 -53.4 repurchase agreements 562,109 - 163,847 … … loans 892,928 264,433 86,266 … … impaired assets 15,828 15,727 16,217 0.6 -2.4 …… -short term 2,584,627 1,261,963 1,338,427 … 93.1 % on nominal value 98.3 96.6 94.7 1.8 3.8 -medium/long term 44,587 44,465 74,751 0.3 -40.4 % on nominal value 1.7 3.4 5.3 - Bad loans - - - … … % on nominal value - - - -Value adjustments (-) 873 873 778 - 12.2 (1) Net of debt securities classified as L&R. (2) Before value adjustments. (3) Based on the new provisions issued by the Bank of Italy in the first update of Circular 262/2005 dated 18 November 2009 ("The bank financial statements: drafting tables and provisions"), including the reorganisation of the information on "impaired assets" and "assets sold and not cancelled", the latter are now recorded under the relevant technical forms and no more as an independent item. The corresponding figures as at 31/12/2009 have been adequately reclassified to allow a homogeneous comparison.

Total impaired loans rose to €1,777.6 million, of 2009 from rescheduled to watchlist. up by 5% in the quarter and by 48.6% in the Impaired cash loans to customers equalled twelve-month period. Over 99.1% of these refer €1,743.6 million (+5.2% from December and to ordinary customers. Corresponding value +50.4% from March 2009). Impaired credit adjustments amount to €444.8 million (+5.7% commitments equalled €18.2 million (-6.9% in and +19.2% in the three and twelve-month the three-month period and -12.8% in the twelve- periods, respectively). month period). Impaired cash loans and credit commitments refer As regards cash loans to customers, the analysis to a single position, reclassified in the last quarter of the individual aggregates shows the following:

77 − bad loans totalled €806.6 million, up by 2009); 10.9% from the beginning of the year, and by − past due loans amounted to €420.5 million, 34.5% in the year; they were written down by up by 1.6% in the three-month period and 47.5% (47.6% in December and 52.3% in more than double in the twelve-month period. March 2009). The bad loans/loans ratio as They were written down by 2.6 % (2.2% in regards customers equals 4.2% (3.7% in December and 2.4% in March 2009). December and 3.4% in March 2009); Impaired credit commitmnets amounted to − watchlist loans amounted to euro 396.1 €18.2 million, down by 6.9% in the three-month million, up by 0.6% from the end of the year period and 12.8% in the twelve month period. and 10.5% in the twelve-month period. They They were written down by 25.2% (24.5% in were written down by 10.9% (14.7% in December and 22.9% in March 2009). December and 13.7% in March 2009); Overall, value adjustments on cash and credit − rescheduled loans amounted to €120.3 commitments amounted to €493 million, €484.9 million, a decrease from €122.8 million in million of which refer to cash loans and €8.1 December 2009 and €3.7 million in March million refer to endorsement loans. 2009. They were written down by 1.7% (1.8% in December 2009 and 6.7% in March

78 CREDIT QUALITY (1) (figures in thousands of euro)

31/3/2010 31/12/2009 Gross Value Net Gross Value Net % % exposure (a) adjustments (b) exposure (a-b) exposure (a) adjustments (b) exposure (a-b) b/a b/a Cash loans Bad loans 806,644 383,426 423,218 47.5 727,395 346,023 381,372 47.6 - customers 806,644 383,426 423,218 47.5 727,395 346,023 381,372 47.6 Watchlist loans 411,951 43,902 368,049 10.7 409,431 58,913 350,518 14.4 - banks 15,828 873 14,955 5.5 15,727 873 14,854 5.6 - customers 396,123 43,029 353,094 10.9 393,704 58,040 335,664 14.7 Rescheduled loans 120,334 2,098 118,236 1.7 122,775 2,250 120,525 1.8 - banks ------customers 120,334 2,098 118,236 1.7 122,775 2,250 120,525 1.8 Past due loans 420,492 10,773 409,719 2.6 414,040 8,915 405,125 2.2 - banks -- -… -- -… - customers 420,492 10,773 409,719 2.6 414,040 8,915 405,125 2.2 Total Impaired loans 1,759,421 440,199 1,319,222 25.0 1,673,641 416,101 1,257,540 24.9 Performing loans 20,247,585 45,565 20,202,020 0.2 19,270,034 46,196 19,223,838 0.2 - banks 2,613,386 - 2,613,386 - 1,290,701 - 1,290,701 - - customers 17,634,199 45,565 17,588,634 0.3 17,979,333 46,196 17,933,137 0.3 Total cash loans 22,007,006 485,764 21,521,242 2.2 20,943,675 462,297 20,481,378 2.2 - banks 2,629,214 873 2,628,341 0.0 1,306,428 873 1,305,555 0.1 - customers 19,377,792 484,891 18,892,901 2.5 19,637,247 461,424 19,175,823 2.3 Credit commitments Impaired 18,189 4,581 13,608 25.2 19,539 4,785 14,754 24.5 - customers 18,189 4,581 13,608 25.2 19,539 4,785 14,754 24.5 Other loans 1,524,237 3,565 1,520,672 0.2 1,608,913 4,011 1,604,902 0.2 - Banks (2) 52,835 - 52,835 - 120,778 - 120,778 - - customers 1,471,402 3,565 1,467,837 0.2 1,488,135 4,011 1,484,124 0.3 Total credit commitments 1,542,426 8,146 1,534,280 0.5 1,628,452 8,796 1,619,656 0.5 - banks 52,835 - 52,835 - 120,778 - 120,778 - - customers 1,489,591 8,146 1,481,445 0.5 1,507,674 8,796 1,498,878 0.6 Total 23,549,432 493,910 23,055,522 2.1 22,572,127 471,093 22,101,034 2.1 - banks 2,682,049 873 2,681,176 0.0 1,427,206 873 1,426,333 0.1 - customers 20,867,383 493,037 20,374,346 2.4 21,144,921 470,220 20,674,701 2.2

31/3/2009 31/12/08 Gross Value Net Gross Value Net % % exposure (a) adjustments (b) exposure (a-b) exposure (a) adjustments (b) exposure (a-b) b/a b/a Cash loans Bad loans 599,586 313,378 286,208 52.3 539,202 291,915 247,287 54.1 - customers 599,586 313,378 286,208 52.3 539,202 291,915 247,287 54.1 Watchlist loans 358,754 49,048 309,706 13.7 365,067 52,849 312,218 14.5 - banks 243 21 222 8.6 241 21 220 8.7 - customers 358,511 49,027 309,484 13.7 364,826 52,828 311,998 14.5 Rescheduled loans 19,703 1,008 18,695 5.1 19,535 1,004 18,531 5.1 - banks 15,972 757 15,215 4.7 15,873 757 15,116 4.8 - customers 3,731 251 3,480 6.7 3,662 247 3,415 6.7 Past due loans 197,121 4,823 192,298 2.4 219,042 3,414 215,628 1.6 - banks 2- 2 - 2- 2 - - customers 197,119 4,823 192,296 2.4 219,040 3,414 215,626 1.6 Total Impaired loans 1,175,164 368,257 806,907 31.3 1,142,846 349,182 793,664 30.6 Performing loans 17,744,214 51,311 17,692,903 0.3 17,747,387 47,156 17,700,231 0.3 - banks 1,396,961 - 1,396,961 - 1,015,754 - 1,015,754 - - customers 16,347,253 51,311 16,295,942 0.3 16,731,633 47,156 16,684,477 0.3 Total cash loans 18,919,378 419,568 18,499,810 2.2 18,890,233 396,338 18,493,895 2.1 - banks 1,413,178 778 1,412,400 0.1 1,031,870 778 1,031,092 0.1 - customers 17,506,200 418,790 17,087,410 2.4 17,858,363 395,560 17,462,803 2.2 Credit commitments Impaired 20,868 4,774 16,094 22.9 19,826 4,772 15,054 24.1 - customers 20,868 4,774 16,094 22.9 19,826 4,772 15,054 24.1 Other loans 1,503,129 3,770 1,499,359 0.3 1,560,549 3,603 1,556,946 0.2 - Banks (2) 64,496 - 64,496 - 82,457 - 82,457 - - customers 1,438,633 3,770 1,434,863 0.3 1,478,092 3,603 1,474,489 0.2 Total credit commitments 1,523,997 8,544 1,515,453 0.6 1,580,375 8,375 1,572,000 0.5 - banks 64,496 - 64,496 - 82,457 - 82,457 - - customers 1,459,501 8,544 1,450,957 0.6 1,497,918 8,375 1,489,543 0.6 Total 20,443,375 428,112 20,015,263 2.1 20,470,608 404,713 20,065,895 2.0 - banks 1,477,674 778 1,476,896 0.1 1,114,327 778 1,113,549 0.1 - customers 18,965,701 427,334 18,538,367 2.3 19,356,281 403,935 18,952,346 2.1 (1) Net of debt securities classified as Loans & Receivables (L&R) (2) Based on the new provisions issued by the Bank of Italy in the first update of Circular 262/2005 also commitments taken towards the guarantee interbank systems have now been recorded among credit commitments. Previous periods have been reclassified.

The securities portfolio amounted to the Bank of Italy, accounted for at €776.8 million; €5,680.9 million, up by 12.1% and 56.8% in this figure results from a valuation at fair value - three and twelve months respectively. Roughly using shareholders’ equity as the most reliable 80.1% of the portfolio was accounted for by debt proxy of fair value – performed on the basis of the securities, which increased by +15.7% in three balance sheet data of the Bank of Italy as at 31 months and +71.3% in twelve. Equities were December 2008 (last approved financial substantially stable in the three-month period (- statements), consistent with the accounting 0.8%) and rose in the twelve-month period principle adopted for the preparation of the (+18.8%). Shares in collective investment financial statements of the Bank and of the schemes increased in the three-month period consolidated financial statements of the Banca (+2.3%) and twelve-month period (+5%). Equities Carige Group as at 31 December 2009. available for sale included the equity investment in

SECURITIES PORTFOLIO (figures in thousands of euro)

Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Debt securities 4,551,199 3,931,950 2,656,802 15.7 71.3 Held for trading 589,297 585,302 620,427 0.7 -5.0 Available for sale 3,053,221 2,425,644 725,522 25.9 … Loans & Receivable 908,681 921,004 890,710 Held to maturity - - 420,143 … -100.0

Equities 994,180 1,002,701 836,871 -0.8 18.8 Held for trading 100 690 1,204 -85.5 -91.7 Available for sale 994,080 1,002,011 835,667 -0.8 19.0

Shares in collective investment schemes 135,487 132,437 129,063 2.3 5.0 Held for trading 45,802 45,642 45,163 0.4 1.4 Available for sale 89,685 86,795 83,900 3.3 6.9

Total 5,680,866 5,067,088 3,622,736 12.1 56.8 including: Held for trading (1) 635,199 631,634 666,794 0.6 -4.7 Available for sale 4,136,986 3,514,450 1,645,089 17.7 … Loans & Receivable 908,681 921,004 890,710 -1.3 2.0 Held to maturity - - 420,143 … -100 (1) The breakdown does not correspond to the item 20 "Financial assets held for trading" as it is net of derivatives.

The amendments made to international October, for a total residual amount of €348.8 accounting principles IAS 39 and IFRS 7 in million as at 31 March 2010, as detailed in the October and November 2008 allowed for new table below: types of reclassifications, with the possibility of retroactive effectiveness to 1 July 2008 if carried out before 31 October 2008. Pursuant to said amendments, Banca Carige reclassified securities, effective 1 July and 1

80 TRANSFERS BETWEEN PORTFOLIOS: BOOK VALUE, FAIR VALUE AND EFFECT ON THE TOTAL PROFITABILITY

(figures in thousands of euro) Type of financial Origin Allocation Book value as at Fair Value as Income components in the absence Income components recorded for the instrument portfolio portfolio 31/3/10 at 31/3/10 of the transfer (before taxes) year (before taxes) Valuation-related Other Valuation-related Other

Debt securities HFT AFS 101,046 101,046 3,486 1,326 3,325 911 Equities HFT AFS 12,857 12,857 370 4 370 (220) Shares in collect. inv. HFT AFS 53,126 53,126 636 - (354) - schemes Debt securities HFT HTM (1) 12,072 12,072 (8) 250 (12) 491 Debt securities HFT L&R 132,887 120,589 5,794 720 1,377 Debt securities AFS L&R 36,848 37,908 901 205 205 Total 348,836 337,598 11,179 2,505 3,329 2,764 (1) An information disclosure has been provided for securities which, after being previously classified from HFT to HTM, have been reclassified from the latter to AFS following the application of forecasts set forth in paragraph 52 of IAS 39 in financial statements as at 31/12/2009.

If the Bank had not reclassified the financial The latter refer, for €18.7 million, to debt assets listed above, the quarter would have securities (composed almost entirely of recorded positive income components Government, bank and corporate bonds with amounting to €11.2 million instead of €3.3 high credit ratings) and for €100.7 million to million reported. equities and shares in collective investment The portfolio of debt securities reclassified in schemes of leading banking and insurance the AFS (Available For Sale, HTM (Held To issuers. Maturity)1 and L&R (Loans & Receivables) for a nominal value of €288.1 million has an The value of assets from hedging effective interest rate of 6.8% with expected derivatives amounted to €104.8 million, cash flows estimated at €399.9 million. up compared with €72.9 million in December and €71.1 million in March 2009. The value of liabilities from hedging derivatives, As at 31 March 2010, valuation reserves at €413.1 million, was higher than the relative to securities classified in the AFS €276.7 million in December and €145.5 (Available For Sale) category amounted to million in March 2009. A total of €40.1 €624.2 million (an increase of €16.6 million million in revaluations and €116.8 million in compared with the positive balance of €640.8 write-downs were registered on hedging million at 31 December 2009) and composed derivative contracts; changes in the underlying of €743.6 million of positive reserves, relating assets were positive for €76.9 million. mainly to the valuation of the equity investment in the Bank of Italy (€728.2 million), and of €119.4 million of negative reserves.

1 Riclassified in the financial statements as at 31/12/2009 in the AFS category following the application of the “Tainting Rule”

81 ASSETS FROM HEDGING DERIVATIVES BY HEDGE TYPE (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Asset hedging derivatives - - - … … Fair value hedging - - - … … interest rates - - - … … Cash flow hedging - - - … … General interest rate risk hedging - - - … … Liability hedging derivatives 104,806 72,885 71,126 43.8 47.4 Fair value hedging 101,480 69,384 69,312 46.3 46.4 interest rates 101,480 69,384 69,312 46.3 46.4 Cash flow hedging - - - … … General interest rate risk hedging 3,326 3,501 1,814 -5.0 83.4 Total 104,806 72,885 71,126 43.8 47.4

LIABILITIES FROM HEDGING DERIVATIVES BY HEDGE TYPE (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Asset hedging derivatives 303,537 194,983 54,940 55.7 … Fair value hedging 303,537 194,983 54,940 55.7 … interest rates 303,537 194,983 54,940 55.7 … Cash flow hedging - - - … … General interest rate risk hedging - - - … … Liability hedging derivatives 109,530 81,674 90,589 34.1 20.9 Fair value hedging 101 2,839 130 -96.4 -22.3 interest rates 101 2,839 130 -96.4 -22.3 Cash flow hedging - - - … … General interest rate risk hedging 109,429 78,835 90,459 38.8 21.0 Total 413,067 276,657 145,529 49.3 …

With reference to the notional values, the derivative contract amount equalled €11,074.1 million, up from December (+10.1%) and from March 2009 (+50%).

NOTIONAL VALUES OF DERIVATIVE CONTRACTS (figures in thousands of euro)

Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Financial derivatives 10,905,776 9,886,267 7,170,414 10.3 52.1 futures - - - … … forward agreements (1) 611,109 644,908 475,393 -5.2 28.5 swap 8,968,685 7,939,391 5,271,569 13.0 70.1 options purchased 970,296 942,556 1,019,596 2.9 -4.8 others 355,686 359,412 403,856 -1.0 -11.9 Credit derivatives 168,338 172,644 214,617 -2.5 -21.6 tror - 161 4,471 -100.0 -100.0 cds 168,338 172,483 210,146 -2.4 -19.9 TOTAL 11,074,114 10,058,911 7,385,031 10.1 50.0 (1) Sub-item "forward agreements" includes also the so-called "regular way" transactions.

Trading derivative contracts totalled €258.3 recorded on the trading derivative contracts. Net million, up compared to December (+5.1%) and losses on trading amounted to €7.7 million. March 2009 (+10.8%). Revaluations of €18.2 million and write-downs of €29.6 million were

TRADING DERIVATIVES (figures in thousands of euro)

Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09

Positive countervalues 100,941 93,483 86,810 8.0 16.3 Financial derivatives 99,901 92,592 76,408 7.9 30.7 forward agreements 4,173 4,215 14,628 -1.0 -71.5 swap 76,444 66,224 45,249 15.4 68.9 options purchased 19,284 22,153 16,531 -13.0 16.7 Credit derivatives 1,040 891 10,402 16.7 -90.0 cds 1,040 891 10,402 16.7 -90.0 others - - - … … Negative countervalues 157,335 152,261 146,206 3.3 7.6 Financial derivatives 153,543 148,147 143,292 3.6 7.2 forward agreements 11,999 7,904 8,483 51.8 41.4 swap 130,913 128,745 126,007 1.7 3.9 issued options 10,631 11,498 8,802 -7.5 20.8 Credit derivatives 3,792 4,114 2,914 -7.8 30.1 tror - - 9 … -100.0 cds 3,792 4,114 2,905 -7.8 30.5

TOTAL 258,276 245,744 233,016 5.1 10.8

Net income on derivative contracts was a hedges recorded a positive net result of €0.3 negative €18.8 million; trading contracts made a million. negative contribution of €19.1 million while

NET INCOME ON DERIVATIVE CONTRACTS AS AT 31/3/2010 (figures in thousands of euro)

Revaluations Write-downs Net profit Net income on trading

1. Trading contracts 18,230 - 29,567 - 7,740 - 19,077 1.1 Financial derivatives 17,333 - 29,070 - 7,200 - 18,937 1.2 Credit derivatives 897 - 497 - 540 - 140

Revaluations Write-downs Changes in underlying Net income from hedging 2. Hedging contracts 40,148 - 116,810 76,925 263 2.1 Asset hedging 928 - 113,245 114,105 1,788 2.2 Liability hedging 39,220 - 3,565 - 37,180 - 1,525

TOTAL 58,378 - 146,377 69,185 - 18,814

83 3. Economic results

As at 31 March 2009, the income statement expense came to €89.6 million, down by 32.6%. posted a net profit of €22 million against €35.8 The net interest income from customers, million for the same period in 2009. considering also the interest expense on securities In particular, the net interest income in issue, showed a decrease of 27.5% while the amounted to €111.4 million, a decrease of interbank balance fell by 59.1%. 21.4% in the year. Interest income amounted to €201 million, down by 26.9% and interest

INTEREST INCOME (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Financial assets held for trading 4,905 19,865 6,467 -1,562 -24.2 Available-for-sale financial assets 22,343 56,113 8,918 13,425 … Financial assets held to maturity - 9,794 4,078 -4,078 -100.0 Loans to banks 6,828 43,156 16,243 -9,415 -58.0 Loans to customers 166,638 812,542 238,885 -72,247 -30.2 Other assets 310 722 254 56 22.0 TOTAL INTEREST INCOME 201,024 942,192 274,845 -73,821 -26.9

INTEREST EXPENSES (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Amounts owed to banks 2,469 13,340 5,579 -3,110 -55.7 Amounts owed to customers 25,116 118,954 37,690 -12,574 -33.4 Securities in issue 54,749 245,643 81,303 -26,554 -32.7 Financial liabilities designated at fair value 1,935 7,694 1,160 775 66.8 Other liabilities 100 405 100 - - Hedging derivatives 5,257 25,831 7,229 -1,972 -27.3 TOTAL INTEREST EXPENSES 89,626 411,867 133,061 -43,435 -32.6

Net commissions amounted to €59.7 million, and commissions from management, an increase of 15.9% over the first quarter of intermediation and consultancy (€22.8 million; 2009. Commission income stood at €66.4 +9.1%). million, 13.6% higher than the total for the first On the other hand there was a decrease in three months of 2009. This included an increase commissions from the placement of securities in current account fees (€19.8 million; +15.6%) (€6.7 million; -4%).

84 COMMISSION INCOME (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Guarantees issued 3,280 10,330 2,153 1,127 52.3 Management, dealing and consultancy services: 22,847 88,525 20,946 1,901 9.1 1. Financial instruments trading 332 1,071 114 218 … 2. Currency trading 644 2,602 568 76 13.4 3. Asset management 981 6,844 1,773 -792 -44.7 4. Securities custody and administration 670 2,617 585 85 14.5 5. Custodian bank 853 3,114 788 65 8.2 6. Placement of securities 7,971 29,059 6,770 1,201 17.7 7. Collection of orders 2,513 9,494 2,183 330 15.1 8. Consultancy services 3 2 - 3… 9. Distribution of third-party services 8,880 33,722 8,165 715 8.8 - portfolio management 265 906 189 76 40.2 - insurance products 4,868 17,524 4,568 300 6.6 - other products 3,747 15,292 3,408 339 9.9 Collection and payment services 12,389 50,963 11,679 710 6.1 Servicing for securitizations 526 2,518 698 -172 -24.6 Factoring services 377 1,447 334 43 12.9 Maintenance and management of the current accounts 19,822 72,641 17,140 2,682 15.6 Other services 7,120 31,574 5,480 1,640 29.9 TOTAL COMMISSION INCOME 66,361 257,998 58,430 7,931 13.6

COMMISSION EXPENSES (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Guarantees received 167 497 138 29 21.0 Management and intermediation services 1,293 5,388 1,369 -76 -5.6 1. Financial instruments trading 19 690 465 -446 -95.9 3. Portfolio management 211 1,144 188 23 12.2 4. Securities custody and administration 284 1,866 391 -107 -27.4 5. Financial instruments placement 779 1,653 285 494 … 6. Door-to-door sale of securities, financial products and services -3540 -40 -100.0 Collection and payment services 3,054 16,081 3,323 -269 -8.1 Other services 2,143 9,268 2,105 38 1.8

6,657 31,234 6,935 -278 -4.0 TOTAL COMMISSION EXPENSES

Dividends and other similar revenues amounted to Net income from hedging activities was a positive €15 thousand (€21 thousand at March 2009). €0.3 million (€2.1 million at March 2009). Net income from trading activities was a positive €4.1 million (negative for €6.3 million at March 2009).

85 INCOME FROM TRADING ACTIVITIES (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Debt securities 5,499 36,896 11,746 (6,247) -53.2 Equities & collective investment schemes 169 1,407 (229) 398 … Total equities, debt securities & collective investment schemes 5,668 38,303 11,517 (5,849) -50.8 Financial derivatives (18,937) (18,689) (17,605) (1,332) 7.6 Credit derivatives (140) (14,183) (1,743) 1,603 -92.0 Currency differences (120) (120) (133) 13 -9.8 Other financial assets/liabilities from trading 17,606 3,262 1,652 15,954 … INCOME FROM TRADING ACTIVITIES 4,077 8,573 (6,312) 10,389 …

Net income from the disposal of loans and Net value adjustments due to impairment of loans financial assets/liabilities totalled €3.4 million and of other financial items totalled €22 million, (€18 million in the first quarter of 2009). down by 25.9% compared to the same period of Net result of the financial assets/liabilities 2009. In this item, net adjustments to loans measured at fair value was positive for €2.1 amounted to €22.7 million, down by 21.7% million (€1.6 million in the first three months of compared to the first quarter of 2009. Therefore, 2009). the net income from financial Gross operating income fell by 13.3% to management came to €159.1 million, down €181 million compared with the same period last by 11.2% compared to the first three months of year. 2009.

NET VALUE ADJUSTMENTS TO LOANS AND OTHER FINANCIAL ITEMS (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Loans to banks - 95 - … Loans to customers 22,656 83,228 28,943 -6,287 -21.7 Credit commitments (other financial transactions) 422 170 … (651) -821 Available-for-sale financial assets (36) 10,997 522 -558 … NET VALUE ADJUSTMENTS TO LOANS AND OTHER FINANCIAL ITEMS 21,969 94,742 29,635 -7,666 -25.9

Operating costs amounted to €120.7 million, 7% in the year). down by 2% compared to the first quarter of Net provisions for risks and charges stood at €0.2 2009. million against €1.6 million in the first three In detail, administrative costs amounted to euro months of the previous year. 127.3 million, down by 1.9% from the twelve- month period and they included: - staff costs, substantially stable at to €74.7 Value adjustments on tangible and intangible million (-0.4%); fixed assets amounted to €9.3 million, an increase - other administrative costs amounted to €52.6 of 26% in the twelve-month period. million (-4.1% from March 2009), mainly reflecting the decrease in general expenses (-

86 OPERATING COSTS (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Staff costs 74,688 307,525 74,971 (283) -0.4 Other administrative costs 52,619 218,567 54,858 (2,239) -4.1 - general costs 41,844 173,481 44,973 (3,129) -7.0 - indirect taxes 10,775 45,086 9,885 890 9.0 Net provisions for risks and charges 172 3,302 1,636 (1,464) -89.5 Amortization and depreciation on: 9,308 34,263 7,388 1,920 26.0 - intangible fixed assets 5,389 18,723 3,856 1,533 39.8 - tangible fixed assets 3,919 15,540 3,532 387 11.0 Other operating expenses and revenues (16,132) (68,018) (15,727) (405) 2.6 TOTAL OPERATING COSTS 120,655 495,639 123,126 (2,471) -2.0

Other net operating revenues rose by 2.6%, reaching to €16.1 million.

OTHER OPERATING REVENUES AND EXPENSES (figures in thousands of euro) Change 3/10 - 3/09 31/3/10 2009 31/3/09 absolute %

Lease income and rent 1,447 4,805 932 515 55.3 Charges to third parties: 9,503 38,148 9,109 394 4.3 recovery of taxes 9,488 38,085 8,796 692 7.9 customer insurance premiums 15 63 313 -298 -95.2 Other revenues 6,418 36,926 6,861 -443 -6.5 Total other revenues 17,368 79,879 16,902 466 2.8 Operating costs on financial leases (135) (2,380) (63) -72 … Ordinary maintenance costs on investment property (69) (659) (95) 26 -27.4 Expenses for improvement of third parties’ assets (158) (881) (212) 54 -25.5 Other expenses (874) (7,941) (805) -69 8.6 Total other expenses (1,236) (11,861) (1,175) -61 5.2 TOTAL NET REVENUES 16,132 68,018 15,727 405 2.6

Operating profit from ordinary activities compared to €35.8 million in the same period of before taxes stood at €38.4 million, down last year. 31.4% compared to the first three months of Also taking into consideration income 2009. components charged directly to shareholders’ Provisions for income taxes totalled €16.4 million, equity, the statement of comprehensive income down compared to €20.2 million in March 2009. showed a net income of €20.7 million compared Net profit stood at €22 million, down by 38.5% to €37.1 million in the first quarter of 2009.

87 4. Transactions with related parties

Asset and liability relations with shareholders who Directors and Statutory Auditors, which are are able to exercise a significant influence, published annually in the Explanatory Notes to the relations with investee companies (subsidiaries Consolidated Financial Statements) as at 31 subject to considerable influence) and with other March 2010 were as follows: related parties (excluding the fees paid to

RELATIONS WITH SHAREHOLDERS AND WITH INVESTEE COMPANIES (figures in thousands of euro) 31/3/10 Assets Liabilities Guarantees Dividends Other revenues Expenses and commitments distributed

CARIGE SHAREHOLDERS WHO EXERCISE A SIGNIFICANT INFLUENCE 53,809 32,910 0 0 166 111 Fondazione Cassa di Riparmio di Genova e Imperia 53,653 32,906 - - 166 111 Caisses d'Epargne Participations - Groupe BPCE 156 4 - - - -

31/3/10 Assets Liabilities Guarantees Dividends Other revenues Expenses and commitments collected

SUBSIDIARIES 1,459,869 1,361,903 20,931 - 32,859 8,503 Cassa di Risparmio di Carrara SpA 350,872 58,155 - - 3,180 2,083 Cassa di Risparmio di Savona SpA 355,949 70,741 2,250 - 7,809 3,126 Banca del Monte di Lucca SpA 303,116 30,994 2,685 - 3,648 860 Banca Cesare Ponti SpA 80,498 115,823 - - 806 454 Carige Asset Management Sgr SpA 9,779 22,418 - - 6,481 190 Centro Fiduciario SpA 625 1,295 - - 135 207 Argo Finance One Srl 12 12 - - 3 - Argo Mortgage Srl 12 12 - - 3 - Argo Mortgage 2 Srl 3 11 - - 3 - Priamar Finance Srl 12 11 - - 3 - Columbus Carige Immobiliare SpA 4,844 9 - - 130 - Carige Vita Nuova SpA 318 1,009,083 - - 5,928 1,422 Carige Assicurazioni SpA 59,134 35,363 14,296 - 1,088 126 Assi 90 Srl 40 4,111 - - 1 7 Dafne Immobiliare Srl - 774 - - - - IH Roma Srl - 1,291 - - - 1 Creditis Servizi Finanziari SpA 294,652 11,790 1,700 - 3,638 27 Carige Covered Bond Srl 3 10 - - 3 - ENTITIES SUBJECT TO SIGNIFICANT INFLUENCE - 10,763 221 - 5 17

Autostrada dei Fiori SpA - 10,012 50 - 4 10 Consorzio per il Giurista d'Impresa Srl - 3 - - - - Sport e Sicurezza Srl - 610 171 - 1 - WTC SPA in liq. - 28 - - - 7 Nuova Erzelli Srl - 110 - - - - TOTAL 1,459,869 1,372,666 21,152 - 32,864 8,520

RELATIONS WITH OTHER RELATED PARTIES (figures in thousands of euro)

Assets Liabilities Guarantees Revenues Expenses Purchase of and goods and commitments services

Other related parties 42,747 9,377 19,106 318 21 -

TOTAL 42,747 9,377 19,106 318 21 -

88 For the definition of other related parties, refer to the paragraph "Transactions with related parties" in the Explanatory Notes to the Consolidated Interim Financial Statements.

5. Regulatory capital

REGULATORY CAPITAL AND SOLVENCY RATIOS (figures in thousands of euro) Situation as at 31/3/10 31/12/09 31/3/09

Regulatory capital Core Tier 1 Capital 1,533,140 1,533,140 1,487,249 Tier 1 capital 1,693,040 1,693,040 1,647,149 Tier 2 capital 740,358 731,973 665,243 less: deductions -350,012 -350,012 -350,312 Total capital 2,083,386 2,075,001 1,962,079

Tier 3 capital 96,675 97,175 97,175 Tier 3 calculable portion 14,997 16,220 31,691

Regulatory capital including Tier 3 2,098,383 2,091,221 1,993,770

Weighted assets Credit risk 15,728,910 15,433,054 14,972,609 Market risk 350,073 378,619 554,807 Operational risk 1,554,387 1,554,387 1,446,462 Other prudential requirements - - - Total weighted assets 17,633,370 17,366,060 16,973,879

Capital requirements Credit risk 1,258,313 1,234,644 1,197,809 Market risk 28,006 30,289 44,385 Operational risk 124,351 124,351 115,717 Other prudential requirements - - - Capital reduction by 25% 352,667 347,321 339,478 Total requirements 1,058,002 1,041,964 1,018,433

Surplus capital 1,040,381 1,049,257 975,337

Solvency ratios (%) Tier 1 capital/Credit risk weighted assets 10.76% 10.97% 11.00% Regulatory capital/Credit risk weighted assets 13.25% 13.45% 13.10%

Core Tier 1/Total Risk-Weighted Assets 8.69% 8.83% 8.76% Tier 1 capital/Total weighted assets 9.60% 9.75% 9.70% Regulatory capital including Tier 3 capital/Total weighted assets 11.90% 12.04% 11.75%

BANK SUBSIDIARIES

Concerning the figures related to financial intermediation activities by bank subsidiaries it should be mentioned that starting from 2006 the Parent bank decided to be the only bond issuer, leaving only the placement activity to the other banks of the Group: consequently, subsidiary banks do not take account of bonds in direct deposits, but in indirect deposits, especially in the assets under administration segment. In this context, in order to maintain a balanced distribution of maturities, subsidiary banks issue bonds fully subscribed by the Parent Bank and recognised in direct deposits. For bank subsidiaries these transactions resulted in a higher amount of assets under administration and bonds and a decrease in interbank liabilities.

91 Financial intermediation activities (FIA) of the loans/lending ratio was equal to 1.8% (1.9% in Cassa di Risparmio di Savona SpA, December and 1.6% in March 2009). amounting to €2,867.2 million, remained The securities portfolio totalled €212.1 million, substantially stable compared to December a 5.2% increase over December and almost 2009 (-0.1%) and rose by 1.1% compared to doubling in twelve months. March 2009. Direct deposits showed a decrease The income statement showed a net profit of of 3.3% in the three months and 4.2% in twelve €2.1 million, down by 55% compared with to months, amounting to €1,125 million. Excluding March 2009, mainly due to the reduction in bonds issues fully subscribed by the Parent Bank, interest margins and rise in loan adjustments. at €147 million, and including those issued by The cost/income ratio increased from 58.6% in the Parent Bank and placed with customers of March 2009 to 67.1% in March 2010. the subsidiary, at €393.8 million, direct deposits The net interest income fell by 19.2% to 8.8 amounted to €1,371.9 million (-2% and +3.3% million, net commissions rose by 16.2% to 5.5 in three and twelve months respectively). Short- million, the net income from trading activities fell term deposits, at €872.3 million, were from €391 thousand to €123 thousand. The substantially stable compared to the end of the gross operating income fell by 11.1% and year (-0.1%) but increased in twelve months amounted to €14.4 million. (+5.2%). The medium/long-term component, at At 31 March 2010, net value adjustments due €252.7 million, fell by 12.6% in three months to impairment of loans and other financial assets and by 26.9% in twelve months. Indirect amounted to €1.1 million, against write-backs deposits increased by 2.1% over the three €0.6 million at March 2009. months and by 4.9% in twelve months to Operating costs amounted to €9.7 million, an €1,742.2 million. More specifically, assets increase of 1.6%. under management amounted to €673.6 Operating profit from ordinary activities before million (+3.7% and +18.7% respectively over taxes amounted to €3.6 million, down by 50.4% nine and twelve months), assets under custody compared to €7.3 million of March 2009. After stood at €1,068.6 million (+1.1% and -2.3% income taxes amounting to €1.6 million, the over three and twelve months, respectively). profit for the year totalled €2.1 million, Excluding bonds issued by the Parent Bank and recording a 55% decrease compared to March placed with customers of Cassa di Risparmio di 2009. Savona, indirect deposits amounted to €1,348.4 million (+1.9% and -0.9% respectively over Bank staff fell by 25 units in the quarter with one three and twelve months ). new staff member hired and 26 terminations (17 Loans to customers totalled €1,285.2 million of which were rehired by the Parent Bank, where (+3.2% and +13.3% in the three and twelve the resources where already seconded). month period, respectively). Gross bad

CASSA DI RISPARMIO DI SAVONA (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 BALANCE SHEET Total assets 1,614,747 1,577,091 1,500,543 2.4 7.6 Direct Deposits (a) 1,125,035 1,162,855 1,174,557 -3.3 -4.2 Indirect deposits (b) 1,742,190 1,707,043 1,660,929 2.1 4.9 - Assets under management 673,580 649,541 567,616 3.7 18.7 - Assets in custody 1,068,610 1,057,502 1,093,313 1.1 -2.3 Financial Intermediation Activities (FIA) (a+b) 2,867,225 2,869,898 2,835,486 -0.1 1.1 Loans to customers (1) 1,285,173 1,245,554 1,134,011 3.2 13.3 Securities portfolio 212,148 201,750 110,576 5.2 91.9 Capital and reserves 191,067 174,699 193,910 9.4 -1.5 INCOME STATEMENT Gross operating income 14,417 64,099 16,226 -11.1 Net income from financial management 13,302 63,194 16,838 -21.0 Operating profit from ordinary activities before taxes 3,636 22,896 7,324 -50.4 Profit for the period 2,081 15,514 4,624 -55.0 RESOURCES) Number of branches 50 50 50 - - Staff 353 378 380 -6.6 -7.1 (1) Before value adjustments. 92

Financial intermediation activities (FIA) of the 4.3% in December and 3.7% in March Banca del Monte di Lucca SpA amounted 2009). The securities portfolio amounted to to €1,173.4 million (+0.2% in the three-month €16.3 million, €11.5 at December and €4.7 at period and +6.3% in the twelve-month period). March 2009. Within the FIA, direct deposits stood at €776.8 The income statement showed a net profit of million (-1.4% and +5.3% in the three and €836 million, down by 31.2% compared with twelve month period, respectively) whereas the first three months of 2009, mainly due to the indirect deposits increased to €396.6 million reduction in interest margins and the increase in (+3.5% and +8.5% compared to December loan adjustments. The cost/income ratio and March 2009). Excluding bonds issues fully increased over the period from 59.4% in March subscribed by the Parent Bank, at €243.2 2009 to 63.4%. Net interest income decreased million, and including those issued by the Parent by 11.2%, to €5.2 million. Net commissions Bank and placed with customers of the bank, at rose by 12.5%, standing at €2.1 million. In €105.6 million, direct deposits amounted to total, the gross operating income decreased by €639.2 million (-0.6% and +5.3% in three and 6.8%, to €7.4 million. Net value adjustments twelve months respectively). Short-term deposits, due to impairment of loans and other financial at €383.8 million, showed a decrease of 2% in assets amounted to €1.1 million (€976 six three and were up by 7.8% over the year. The thousand at 31 March 2009). medium/long-term component, equal to €392.9 Operating costs decreased by 0.5%, to 4.7 million, fell by 0.7% against December, but rose by million. In particular, staff costs rose by 5.8%, 2.9% over March 2009. Within indirect deposits, reaching €2.8 million, while other administrative assets under management amounted to €95.3 costs increased by 5.2% to €2.1 million. million (+4.6% over three months and +32.5% over Operating profit from ordinary activities before twelve months), while assets under custody totalled taxes amounted to €1.6 million, down by 27.6% €301.3 million (+3.2% and +2.6% respectively); compared to €2.2 million of March 2009. After excluding bonds issued by the Parent Bank and placed with the customers of Banca del Monte di income taxes amounting to €0.8 million, the Lucca, indirect deposits amounted to €291 million profit for the year totalled €0.8 million, (+1.8% and -0.3% in three and twelve months recording a 31.2% decrease compared to respectively). Loans to customers, amounting to March 2009. €859 million, grew by 0.6% over three months and by 8.9% over twelve months. The gross bad loans/lending ratio stood at 4.6% (higher than

BANCA DEL MONTE DI LUCCA (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 BALANCE SHEET Total assets 931,591 920,206 864,181 1.2 7.8 Direct Deposits (a) 776,761 787,468 737,757 -1.4 5.3 Indirect deposits (b) 396,613 383,060 365,575 3.5 8.5 - Assets under management 95,280 91,101 71,932 4.6 32.5 - Assets in custody 301,333 291,960 293,643 3.2 2.6 Financial Intermediation Activities (FIA) (a+b) 1,173,374 1,170,528 1,103,332 0.2 6.3 Loans to customers (1) 859,007 853,845 788,906 0.6 8.9 Securities portfolio 16,287 11,466 4,747 42.0 … Capital and reserves 54,333 50,342 48,177 7.9 12.8 INCOME STATEMENT Gross operating income 7,399 30,527 7,935 -6.8 Net income from financial management 6,299 25,229 6,959 -9.5 Operating profit from ordinary activities before taxes 1,610 6,424 2,225 -27.6 Profit for the period 836 4,028 1,215 -31.2 RESOURCES) Number of branches 21 21 21 - - Staff 160 158 156 1.3 2.6 (1) Before value adjustments.

93 During the year, financial intermediation ratio was equal to 3.9% (3.5% in December and activities on behalf of customers (FIA) of Cassa 3.2% in March 2009). di Risparmio di Carrara SpA totalled The securities portfolio amounted to €157 €1,940.4 million (+0.1% and +1.1% in the million, a rise of 2.7% over December 2009 three and twelve month period). Within the FIA, more than quadrupling compared to March direct deposits totalled €993.3 million (+0.6% 2009. and -1.3% on December and March 2009). The income statement showed a net profit of Excluding bonds fully subscribed by the Parent €0.9 million, down by 70.9% compared to Bank, at €286.2 million, and including those March 2009, mainly due to the reduction in issued by the Parent Bank and placed with interest margins and the considerable rise in customers of the subsidiary, at €327.4 million, loan adjustments. direct deposits amounted to €1,034.5 million (- The cost/income ratio rose to 73.6% compared 1.7% and +1.7% in three and twelve months to 60.4% in March 2009. The net interest respectively). Short-term deposits, at €674 income fell by 23.6% to €7 million with respect million, showed an increase of 2.6% in three to 31 March 2009, as a result of the trend in months and were up by 4.8% over the year. The market rates. Net commissions rose to €3.7 medium/long-term component, at €319.3 million (+13%). Net income from trading million, fell by 3.3% compared with December activities decreased by 55% to €136 thousand. whereas it increased by 12.1% over March The gross operating income decreased by 15% 2009. to €10.9 million. At 31 March 2010 there were Indirect deposits stood at €947.1 million (-0.4% net value adjustments due to impairment of and +3.9% in three and twelve months). These loans and other financial assets for €1.1 million included assets under custody, which reached compared to €0.2 million in March 2009. €659.2 million (-2.5% and -1.6% in December Operating costs rose by 3.7% to €8 million, and March 2009) and assets under despite the reduction in staff costs (4.3 million, - management at €287.9 million (+4.7% and 14.9%) and other administrative costs (4 million, +19.1% in three and twelve months -6.5%). The change is due to the increase in respectively). Excluding bonds issued by the allowances for risks and charges (€270 Parent Bank and placed with customers of thousand) and the decrease in operating income Cassa di Risparmio di Carrara, indirect deposits (€727 thousand, -57.8%). Profits from ordinary amounted to €619.7 million (+3.2% and -1.1% activities before tax amounted to €1.8 million, respectively over three and twelve months). 63.2% lower than the figure in the Loans to customers amounted to €996 million, corresponding period in the previous year. Net down from the start of the year (-2.8%) and over of income taxes of €0.9 million, the profit for the twelve months (-0.9%). Gross bad loans/lending period amounted to €0.9 million, down by 70.9%, compared with March 2009.

CASSA DI RISPARMIO DI CARRARA (figures in thousands of euro)

Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 BALANCE SHEET Total assets 1,256,959 1,277,263 1,264,200 -1.6 -0.6 Direct Deposits (a) 993,314 987,247 1,006,851 0.6 -1.3 Indirect deposits (b) 947,095 950,898 911,668 -0.4 3.9 - Assets under management 287,925 274,925 241,771 4.7 19.1 - Assets in custody 659,170 675,972 669,897 -2.5 -1.6 Financial Intermediation Activities (FIA) (a+b) 1,940,409 1,938,145 1,918,519 0.1 1.1 Loans to customers (1) 995,984 1,024,492 1,004,554 -2.8 -0.9 Securities portfolio 156,970 152,774 36,740 2.7 … Capital and reserves 108,544 97,653 115,909 11.2 -6.4 INCOME STATEMENT Gross operating income 10,913 48,748 12,833 -15.0 Net income from financial management 9,837 47,429 12,652 -22.2 Operating profit from ordinary activities before taxes 1,801 16,125 4,899 -63.2 Profit for the period 859 10,458 2,956 -70.9 RESOURCES) Number of branches 34 34 34 - - Staff 317 319 318 -0.6 -0.3 (1) Before value adjustments.

During the year, the financial intermediation amounting to €251.1 million, grew by 2.1% activities (FIA) on behalf of customers of Banca over three months and by 2.7% over twelve Cesare Ponti SpA increased by 5.6% to months. Gross bad loans/lending ratio was equal to €1,563.9 million (+28.7% compared to March 5.8% (4.9% in December and 3.2% in March 2009). 2009). Within the FIA, direct deposits amounted The securities portfolio amounted to €93.3 to €416.6 million (-10.8% from December and million, up 16.5% in the three-month period and +17.2% since March 2009) and indirect 4.7% in the year. deposits totalled €1,147.2 million (+13.2% The income statement showed a net profit of from December 2009 and +33.4 from March €84 million, down by 78.2% on the amount 2009). The latter included assets under generated in the same period of 2009, mainly management of €328.5 million +27% in nine due to the reduction in net interest income and months and +53.5% in the year, assets under the increase in loan adjustments. The custody amounted to €818.8 million (+8.4% cost/income ratio decreased in the twelve-month since December 2009 and +26.7% since period from 83% to 81.4%. March 2009). The net interest income, at €1.4 million, Excluding bonds issues fully subscribed by the decreased by 19.8% over twelve months. Net Parent Bank, at €62.3 million, and including commissions increased to €1.7 million those issued by the Parent Bank and placed with (+33.7% over the year). Gross operating customers of the subsidiary, at €45.4 million, income amounted to €3.2 million, up by 1.8% direct deposits amounted to €399.7 million (- in twelve months. At 31 March 2010, net value 10.5% and +19.7% in three and twelve months adjustments due to impairment of loans and respectively). Short-term deposits, at €320 other financial assets were recorded totalling million, showed a decrease of 13.6% in three €334 thousand (€189 thousand at March months (+23.9% over twelve months). The 2009). Operating costs totalled €2.6 million, in medium/long-term component, amounting to line with March 2009 (-0.1%) and in particular: €96.6 million, increased by 0.3% compared to staff costs rose by +4.2% to €1.6 million and December and decreased by 0.5% compared to other administrative costs rose to €1.2 million, a March 2009. With regard to indirect deposits, slight reduction compared to March 2009 (- excluding bonds issued by the Parent Bank and 0.1%). The profit from ordinary activities before placed with customers of Banca Cesare Ponti, taxes amounted to €271 thousand. Net of the aggregate amounted to €1,101.8 million income taxes for €187 thousand, the profit for (+13.4% and +34.5% in three and twelve the period amounts to €84 thousand. months respectively). Loans to customers,

BANCA CESARE PONTI (figures in thousands of euro) Situation as at Change % 31/3/10 31/12/09 31/3/09 3/10 3/10 12/09 3/09 BALANCE SHEET Total assets 466,025 512,031 411,647 -9.0 13.2 Direct Deposits (a) 416,625 466,829 355,347 -10.8 17.2 Indirect deposits (b) 1,147,237 1,013,635 860,244 13.2 33.4 - Assets under management 328,483 258,665 214,039 27.0 53.5 - Assets in custody 818,754 754,970 646,205 8.4 26.7 Financial Intermediation Activities (FIA) (a+b) 1,563,862 1,480,464 1,215,591 5.6 28.7 Loans to customers (1) 251,139 245,929 244,450 2.1 2.7 Securities portfolio 93,291 111,690 97,913 -16.5 -4.7 Capital and reserves 30,229 28,883 29,689 4.7 1.8 INCOME STATEMENT Gross operating income 3,227 14,019 3,169 1.8 Net income from financial management 2,893 12,302 3,358 -13.8 Operating profit from ordinary activities before taxes 271 1,868 729 -62.8 Profit for the period 84 883 385 -78.2 RESOURCES) Number of branches 4 4 4 - - Staff 8985834.77.2 (1) Before value adjustments.

Assicurazioni opted for the option provided by INSURANCE SUBSIDIARIES the decree of the Ministry of Economy and Finance no. 60168 of 24/07/2009 allowing insurance companies to reiterate their exception The results of the two insurance companies of the from the standard to use the most recent market Group (Carige Assicurazioni SpA and Carige data to value the non-durable securities portfolio Vita Nuova SpA) are presented below, prepared allowed by ISVAP Regulation no. 28 of 17 in accordance with the applicable provisions of February 2009, as amended by ISVAP Provision the Italian Civil Code and with the provisions no. 2727 of 27/7/09. specific for the insurance industry in Italy With regards to the valuation of the securities (Legislative Decree 175/1995, Legislative Decree portfolio, the result was influenced by a positive 174/1995, Legislative Decree 173/1997, effect of €2.4 million compared to -€0.3 million Legislative Decree 209/2005, ISVAP Provision in the first quarter of 2009. 735/1997). More specifically, net profit from the technical It should be noted that such results are different account was impacted by the increase in gross from those reported in the insurance activities premiums mainly pertaining to the rise in third- section of this Report, where the information party liability car insurance premiums (+16% gathered from the so-called reporting packages compared to March 2009), as a result of the are prepared by the companies based on the increase in premiums, there was a rise in Bank of Italy Provision no. 262 dated 22 operating costs, which rose to €33.5 million December 2005, together with the ISVAP (+10.5%). The incidence on premiums is in line Regulation no. 7 dated 13 July 2007 and of the with the previous year. There was a rise in claims relevant directions of the Parent Bank. for the period, excluding reinsurance (+23.3%, Shareholders’ equity as at 31 March 2009 of to €104.2 million). The share of investment profit Carige Assicurazioni SpA (operating in the transferred to the technical account amounted to non-life segment) amounted to €145.3 million. €5.8 million at March 2010 and the negative Technical reserves excluding reinsurance were balance between other income and other net down by 1.1% and investments, equal to €835.5 technical charges rose from €5.8 to €7.9 million million, were up 0.2% compared to December mainly as a result of the increase in premium 2009. reversals from previous years deriving from March 2010 recorded a net profit of €2.1 portfolio purging. million, compared to a profit in the previous financial year of €1.1 million. Carige

CARIGE ASSICURAZIONI (figures in thousands of euro) Situation as at Change % 3/10 3/10 31/3/10 31/12/09 31/3/09 12/09 3/09 Recognised gross premiums 138,308 551,376 121,414 13.9 Premiums excluding reinsurance 129,249 475,884 117,743 9.8 Claims incurred and settled excluding reinsurance 104,182 347,846 84,487 23.3 Operating costs 33,549 128,160 30,362 10.5 Profit/loss from technical account 1,106 8,921 1,557 -29.0 Net profit 2,083 6,343 1,108 88.0 Investments 835,474 834,138 842,384 0.2 -0.8 Technical reserves excluding reinsurance 832,346 842,028 856,211 -1.1 -2.8 Shareholders' equity with income 145,250 143,167 137,932 1.5 5.3 Insurance agencies 412 391 378 5.4 9.0 Staff 353 312 308 13.1 14.6

96 As at 31 March 2010, shareholders’ equity of volumes, though down by 3.5% compared to Carige Vita Nuova SpA (operating in the life March 2009. insurance industry) amounted to €182.2 million. Moreover, net profit from the technical account Investments and technical reserves, net of was especially influenced by the balance of reinsurance, were up, respectively, by 21.4% (to financial management (€31.9 million against €2,406 million) and by 8.8% (to €3,170 million) €11.5 million in the first quarter 2009). This in the first quarter. Other assets increased by result was influenced by the net alignment of the about 1 million over 31 December 2009 thanks positive market for €4.4 million, by the result of to higher liquidity from security trading security trading activities on government transactions and reabsorbed the following securities and bonds (+€7 million) and by month. dividends for €3 million, most of which allocated The income statement of the first quarter of 2010 to the insured for separate management recorded a loss of €9 million compared to a loss mechanisms. Another factor influencing the in the previous financial year of €1.6 million. income statement in the quarter was the increase Premiums written grew compared to March 2009 in mathematical reserves deriving from the ALM thanks to the increase in the individual analysis (€2.1 million) as a result of interest rate capitalization segment and the continuing trends in the first quarter of 2010. contribution of the bank channel in terms of total

CARIGE VITA NUOVA SPA (figures in thousands of euro) Situation as at Change % 3/10 3/10 31/3/10 31/12/09 31/3/09 12/09 3/09 Recognised gross premiums 284,458 996,289 281,171 1.2 Premiums excluding reinsurance 282,920 987,312 279,313 1.3 Claims incurred and settled excluding reinsurance (1) 64,307 225,117 45,609 41.0 Operating costs 8,017 32,313 8,466 -5.3 Profit/loss from technical account 6,018 -8,258 -2,506 … Net profit 9,012 19,207 -1,573 … Investments (2) 2,406,258 3,060,341 2,349,931 -21.4 2.4 Technical reserves excluding reinsurance (2) 3,169,584 2,914,293 2,297,976 8.8 37.9 Shareholders' equity with income 182,220 173,208 72,428 5.2 … Insurance agencies 299 287 258 4.2 15.9 Staff 99 94 85 5.3 16.5 (1) The item includes the amounts paid net of reinsurance ceded. (2) Including investments where risk is borne by the insured and pension funds. These are mainly investments in index- and unit-linked products.

97 from the end of the March 2009). Among the FINANCIAL SUBSIDIARIES products managed by virtue of delegation, insurance products continued to show positive figures (+3.8% from the end of December and As at 31 March 2010, Carige A.M. SGR +13.3% in the last twelve months) as well as SpA, managed 16 mutual Funds (of which 15 asset management, above all in the first few targeted at retail customers and one reserved for months of the new year (+13.3%). institutional investors), the 4 sub funds of the The economic result showed a net profit of Fondo Pensione Aperto Carige, as well as the roughly €272 thousand (approximately €151 portfolios of products for which Group thousand as at 31 March 2009). In particular, companies delegated the management of the the gross operating income stood at €2.1 related financial resources; specifically, asset million, composed of €9 million of commission management lines of the Parent Bank, 3 internal income and €6.9 million of commission lines of the insurance fund, Gestilink, and the expense. Net financial revenues, formed mainly insurance product Rosa dei Venti. Total volume by income from investment of the Company’s managed by the company amounted to just available funds, amounted to around €17.1 under €4.8 billion, up by 6.2% compared to the thousand while other net revenues stood at beginning of the year. More specifically, the around €4.5 thousand. Operating costs trend showed increases in all segments amounted to €1.6 million. Operating income managed by Carige SGR, both for the quarter stood at €454 thousand. After taxes for €182 and year-on-year. The stock of mutual funds, in thousand, the profit for the first three months of particular, was the most significant (+5.4% and 2010 year amounted to €272 thousand. +21.4% in the last three months and twelve The staff of Carige A.M. SGR amounted to 31 months, respectively), though in terms of units (all seconded by the parent bank, including percentage Fondo Pensione Aperto showed the the general manager). most growth (+7.6% in the quarter and +36.7%

CARIGE A.M. SGR (figures in thousands of euro) Situation as at Change % 3/10 3/10 31/3/10 31/12/09 31/3/09 12/09 3/09 DEALING Assets under management 4,775,116 4,495,548 3,934,599 6.2 21.4 - Mutual funds 3,877,936 3,678,055 3,193,411 5.4 21.4 - Assets management (customer assets) 477,562 421,613 407,805 13.3 17.1 - Insurance products (customer assets) 175,404 168,951 154,759 3.8 13.3 - Pension funds 244,214 226,929 178,624 7.6 36.7 Total assets 28,936 28,370 16,379 2.0 76.7 Capital and reserves 11,087 6,595 8,548 68.1 29.7 INCOME STATEMENT Net commissions 2,056 20,295 1,738 18.3 Administrative costs 1,603 5,974 1,564 2.5 Operating income 454 14,377 254 79.1 Profit for the period 272 9,671 151 79.7 RESOURCES) Staff (1) 31 31 31 - -

(1) Seconded Parent Bank personnel.

98 Creditis Servizi Finanziari SpA continued for over €800 thousand financed by insurance its strategy to expand its commercial offer and agents partnering with the company. increase its penetration into financial services to From a financial perspective, the first quarter of customers of the group and the open market, 2010 closed with a profit of €0.9 thousand. The through the bank and insurance sales network, net interest income stood at €3.3 million. improving its skills and professionalism. The Interest income and similar revenues, at €5.6 range of commercial services offered expanded million, was made up mainly by interest on even further by providing salary-backed loans, personal loans (€5.1 million). Interest expenses currently only granted to pensioners under INPS. and similar charges amounted to €2.2 thousand Loans to customers reached €291.7 million, and was generated by loans given by the Parent compared to €260.9 at December (€109.3 Bank. Commission income amounted to €1.1 million at March 2009). During the quarter, million and was composed mainly by 4,400 personal loans were granted totalling commissions from insurance companies for the €49.5 million. A total of 2,500 insurance distribution of CPI policies (€0.7 million). contracts were stipulated against the loans Commission expenses amounted to €0.5 disbursed, amounting to 56.7% of loans thousand, of which €0.4 thousand in granted. During the quarter about 34 thousand commissions for loan placements. In terms of revolving credit cards were issued, 27 thousand expenses, staff costs seconded by the Parent of which were issued centrally to support the Bank amounted to €0.6 million. Other marketing campaign for the product. A total of administrative costs, including amortisation, 12 thousand were activated by customers, totalled €1.4 million. Net value adjustments for including 10 thousand issued centrally. There impaired loans amounted to €0.6 million. The were over 25 thousand uses for a total of €4.4 operating profit from ordinary activities before million. At the same time, over 1,100 instant taxes was positive at €1.5 million and, net of credit contracts were stipulated (revolving credit income taxes of €0.6 million, generating a profit used by the insurance network to spread car of €933 thousand. insurance payments on stipulation and renewal)

CREDITIS SERVIZI FINANZIARI (figures in thousands of euro) Situation as at 3/10 3/10 31/3/10 31/12/09 31/3/09 12/09 3/09 DEALING Loans to customers (1) 291,702 260,880 109,336 11.8 … - Personal loans (1) 279,691 251,921 106,470 11.0 … - Revolving credit cards (1) 11,874 8,959 2,866 32.5 … - Salary-backed loans (1) 137 Total assets 322,810 298,940 133,180 8.0 … Capital and reserves 21,453 19,625 18,516 9.3 15.9 INCOME STATEMENT Net interest income 3,344 8,292 1,128 … Net commissions 733 2,393 590 24.2 Administrative costs 2,019 6,809 1,508 33.9 Operating income 1,546 2,761 119 … Profit for the period 933 1,665 35 … RESOURCES) Staff (2) 30 30 28 - 7.1 (1) Before value adjustments. (2) Seconded Parent Bank personnel.

99 Argo Finance One Srl, special purpose asset management companies (41% of the vehicle in the securitisation of bad loans, total), retail banks (26%), central banks (23%) established by Banca Carige towards the end of and insurance companies and pensions funds 2000, in the first three months of 2010 (around 10%). A total of 94% of the registered collections for €0.8 million. Against a subscriptions were made by Italian, German, net value from disposal of loans of €165.3 French, English and Finnish investors. The million, collections from the start of the remaining 6% was split between the other major operation amounted to €217.5 million. 22.2 European countries. million in class C entirely subscribed by Carige This security includes the following features: remain to be paid. - maturity at seven years (25 November 2016); Priamar Finance Srl, special purpose vehicle - annual coupon of 3.75%, a yield around 47 for the securitisation of bad loans established by basis points higher than the BTPs of a similar Cassa di Risparmio di Savona at the end of duration; 2002, collected €0.3 million in the first three - AAA/Aaa rating attributed by Fitch and months of 2010. Against a net value from Moody’s. disposal of loans of €28 million, collections from the start of the operation amounted to €37.2 million. Argo Mortgage Srl, a special purpose vehicle for the securitisation of private mortgage loans established by Banca Carige at the end of 2001, recorded takings for a total of €539 million, of which €5.5 million in the first three months of 2010. Argo Mortgage 2 Srl, a special purpose vehicle in the securitisation of mortgage loans to private customers, established by Banca Carige on 30 June 2004, registered overall collections of €715.1 million, €19.1 million of which in the first three months of 2010. Carige Covered Bond Srl, special purpose vehicle for the medium/long-term deposit programme for a maximum of 5 billion (over a period of five years: 2008-2013), collected a total of €469.8 million, €92.1 million of which in the first quarter of 2010. At 31 March 2010 the sold loans portfolio had a remaining credit of 2.2 billion. Considering the exposure related to bonds issued and the minimum level of overcollateralization maintained (21.95%), at 31 March 2010 an additional number can be issued for a total of about 300 million. The total amount of loans sold equal €2,539.6 million, €1,034 million of which at September 2009. In December 2008 there was an initial issue of guaranteed bank bonds amounting to 500 million. These securities – which can be fully used by Banca Carige – are eligible assets that can be used at the European Central Bank for repurchase agreements. Against the disposal made in September 2009, on 5 November 2009 new bonds were placed on the market for an amount of €1 billion. The issue, managed by a leading group of international banks, UBS Investment Bank, Natixis, Deutsche Bank, HSBC Group and Unicredit Group, was subscribed by

100

thousand, up by 79.9% compared to the same THE OTHER MAIN SUBSIDIARIES period in 2009. Revenues from production totalled €408 thousand (+€40.7% over the first quarter of Columbus Carige Immobiliare SpA, 2009), constituted by fiduciary administration which after the transfer of instrumental assets to commissions of €201 thousand (+29.8% over the parent bank, operates exclusively in the the first quarter of 2009) and €207 thousand in property trading sector (merchandise assets) in fees paid by the Parent Bank for the provision of order to favour credit collection for the group. fiduciary services carried out in favour of the The first quarter of 2010 ended at a loss of Bank’s customers (+€53.3% over the first €121 thousand due to the fall in property sales quarter of 2009). Against said revenues, and interest paid on credit lines granted by the ordinary operating costs amounted to €207 parent bank. thousand (+12.9% over the first quarter of Immobiliare Carisa Srl in the first quarter of 2009). The operating profit from ordinary 2010 reported a loss of €25 thousand (a loss of activities amounted to €200 thousand, an €40 thousand in the first quarter of 2009). This annual increase of 88.7%. Extraordinary result is related to the fall in property sales due activities recorded a decrease in financial to the stagnating real-estate market and income, down by 63.7% from €12 thousand at expenses for urgent extraordinary building 31 March 2009 to €4 thousand at 31 March renovation work. 2010. Net of taxes for €70 thousand, profit Centro Fiduciario CF SpA ended the first reached €134 thousand.

€ quarter of 2010 with a net profit of 134

Genoa, 11 May 2010 The Board of Directors

101

102 I the undersigned Daria Bagnasco, Planning and Accounting Head Office Manager of Banca CARIGE S.p.A., in my capacity as Manager responsible for preparing the Company’s financial reports

declare

that the accounting information contained in the Interim report on operations of the Banca CARIGE Group as at 31 March 2010 corresponds to the document results, books and accounting records.

Genoa, 11 May 2010

The Manager responsible for preparing the Company’s financial reports Daria Bagnasco

[signed on the original]

103