Dire. Fare. Popolare. Senza Spese E Commissioni

Home , Banca Leonardo, Banco BPM, Coppa Bernocchi, Palio di Legnano, Unicredit

88 SOCIAL POLICY REPORT OF THE BPM GROUP

89 c. 1885 – “Columns of San Lorenzo – Milan”, Arturo Ferrari. Owned by Banca Popolare di Milano SOCIAL POLICY REPORT

In this part of the Social Responsibility Report we give space to the relationships that we have with our various categories of stakeholder: we explain the strategies that we have for each of them, the activities that we have carried on during the year and the commitments that we have taken to improve our relationship with them.

Personnel Community

BPM Group Suppliers

Customers BPM Group

Members and Shareholders

Environment

90 CUSTOMERS

91 c. 1950 – “Porta Venezia”, Umberto Lilloni. Owned by Banca Popolare di Milano ID CARD 1

Around 1,319,000 customers of the commercial banks, including ■ Figures at end 2009 1,168,000 individuals ■ 151,000 companies. The geographical distribution of customers continues to reﬂ ect BPM’s strong roots in Lombardy (66% of the total), followed by a substantial presence in Lazio (around 11% of the total). Most of the other customers are split between Emilia Romagna and Puglia.

TYPE OF CUSTOMERS

■ Individuals 88.5% ■ Companies 11.5%

INDIVIDUALS AND COMPANIES

INDIVIDUALS There are around 1,170 thousand individual customers, equally split between men and women. Their average age is around 53 years and they have been customers for an average of 14 years.

COMPANIES The BPM Group serves more than 150,000 companies, most of which are small businesses (more than 90%).

■ Small businesses 91.1% ■ Medium-sized enterprises 8.2% ■ Large corporates 0.7%

1 Figures of the ID card relating to the Parent Bank and to the commercial banks. Common customers are shown under each bank.

! Figures and Ratios pages 258-261

92 CUSTOMERS

The period of fi erce competition and general economic uncertainty deriving from the fi nancial crisis that ended up affecting the entire world yet again confi rmed one of our longest-standing convictions: the importance of being a Group of reference in the territory for the development of its players, be they households or companies, appreciating to the full the value of having a long-term relationship with customers.

Thanks to the birth of WeBank, the Group has also reinforced its position in online banking, implementing a strategy that is consistent with the new distribution models that allows us also to be a “nationwide bank”. In this way we can also look after customers whose proﬁ le and buying behaviour are closer to the virtual network.

Because of its co-operative nature, the BPM Group traditionally has proximity to the territory among its values and objectives. But now it is creating a new geographical presence which is given by the sum of its “physical territory” and its “virtual territory”.

93 1900 – “Old House at Trarego”, Roberto Borsa. Owned by Banca Popolare di Milano

94 CUSTOMERS’ EXPECTATIONS: LISTENING

We consider listening to customers to be a very important activity. For years we have been using various methods of listening so that we know their expectations, level of satisfaction and suggestions for improvements: these range from less formal methods, such as the constant dialogue that goes on with customers, to more structured and systematic methods, such as our customer satisfaction survey and the handling of complaints.

LISTENING TO CUSTOMERS AT BANCA AKROS

In order to create moments of discussion, Banca Akros organises individual meetings between private bankers and their customers every two months. With around 200 customers these meetings are weekly.

In the Italian and western economic The Realist movement, which prefers context, the Great War gives women light and solid images, continues in Italy a chance to gain emancipation alongside Avant Garde painting. and enter the world of employment.

95 CUSTOMER SATISFACTION ✓ Our customer satisfaction survey was carried out again in 2009. During such an odd period from an economic and ﬁ nancial point of view, listening to customers has helped us to understand their needs better and to think up the most suitable solutions to gain their approval. This type of survey - the ﬁ fth edition for the Parent Bank, the fourth for Banca di Legnano and Cassa di Risparmio di Alessandria - has revealed an increase in overall satisfaction for all of the companies, ! Figures and Ratios page 262 which has allowed the Group to maintain a good position within the banking system.

INDIVIDUAL CUSTOMER RESULTS Analysis of individual customers’ replies to the survey reveals the proﬁ le of a Group that has held up well despite the crisis, offering guarantees of stability, above all to investors, and strengthening the relationship between customer and bank, an aspect that continues to be one of our strong points. 2009 showed a general improvement in survey results, especially for Banca di Legnano and Cassa di Risparmio di Alessandria. INDIVIDUAL CUSTOMER RESULTS

2007 2008 2009

58.5 56.2 60.2 SATISFACTION OF THE CUSTOMERS OF ANIMA SGR

The average level of satisfaction based on a survey 30.3 32.6 30.5 carried out towards the end of 2009 on a sample of 1,600 11.2 11.2 9.3 customers of Anima SGR was 7.1 on a scale of 1 to 10. vote 8-10 vote 6-7 vote 1-5

96 Good results were also achieved by WeBank with an average level of satisfaction that was above average for the system (75%) both for the pure online channel (79%) and for the multichannel (83%). The following have improved in particular: the Help Centre service (courtesy, waiting time, ability to resolve problems, etc.), the processes of opening a new account, the security of procedures, communications via e-mail, bancomat, credit card, investments, online trading and the website. The only ﬁ gure that has fallen is the one for current accounts (from 74% to 71%) because of the decline in interest rates.

PRIVATE BANKING CUSTOMER RESULTS Another survey was carried out on private banking customers which showed that there was an improvement in their overall opinion compared with 2008. Positive opinions have increased above PRIVATE CUSTOMER RESULTS all in the assessment of the 2008 2009 relationship with their personal consultant, for which the result is 49.5 55.6 better than the average expressed by private banking customers 39.5 33.0 generally in Italy, based on the ﬁ nal 11.0 11.4 report issued by AIPB 1 in 2009 vote 8-10 vote 6-7 vote 1-5 “CS Analysis of Private Banking Customers in Italy”. Satisfaction remains stable for investment management, while a possible area for improvement is communication, both as regards the transparency of conditions and for the timeliness of information about ﬁ nancial products.

1 Association Italiana Private Banking

The end of the Great War brings 1919 sees the birth in Germany a wave of optimism to the Italian of the Bauhaus which lays the economy; peace brings further growth foundations of modern design, for BPM, which sees deposits rise. applying the latest dictates of artistic research to industrial production.

97 SMALL BUSINESS CUSTOMER RESULTS The results of the survey on Small Business Customers were more or less in line with 2008. This is satisfactory considering the particular state of the economy and the effect it had on this segment. In particular, customer satisfaction SMALL BUSINESSES for Cassa di Risparmio di 2007 2008 2009 Alessandria is high, above all for the professionalism and skills

of the consultant. For BPM, the 58.6 59.8 56.9 consultant’s ability to propose the

best solutions for the business is 30.3 28.9 30.8

still an area for improvement. 11.1 11.3 12.3

vote 8-10 vote 6-7 vote 1-5

1957 “The Metaphysical Architect”, Giorgio De Chirico. Owned by Banca Popolare di Milano

98 HANDLING OF COMPLAINTS

2009 saw the introduction of a new way of splitting complaints, essentially by product category, as developed by an ABI work group: loans, investments, accounts and services.

In line with the entire banking industry, in 2009 the BPM Group also ! Figures and Ratios page 263 registered a higher number of complaints than the previous year (+28%), mainly because greater difﬁ dence on the part of customers versus banks than for genuine reasons; conﬁ rmation of this is the fact that more than half of the complaints handled did not have a positive outcome for the customer. 99% of the complaints received were dealt with in an average of 18 days.

In order of frequency, the complaints concerned: accounts and services (48%), investments (31%), loans (17%) and other complaints (4%). In particular, with reference to the “Accounts and Services” segment, in 2009 there were considerable complaints about the new Overdrawn Account Indemnity Commission, ongoing problems linked to disservices in the delivery of mail to customers and traditional complains about cards, ATMs, unauthorised payment instructions, cheques, etc.

After the Great War, growth returns Around 1920 Giorgio De Chirico to Banca di Legnano which develops consecrates the Metaphysical intense relationships with many local movement in painting, which portrays industrial complexes and undertakes objects outside of their usual context, to sustain the service sector. thereby revealing new meanings.

99 TRANSPARENCY: “COMMITMENTS FOR QUALITY”

Given that we consider it to be of fundamental importance that relations with customers be managed with the maximum transparency, trust and fairness, for years the Group has chosen to participate in the initiatives foreseen by the PattiChiari Consortium, taking part in the restricted group of banks that look after their implementation.

To give a further boost to customer relations, the Management Council of the PattiChiari Consortium, with more direct input from the consumer associations, formulated 30 “Commitments for quality” to which the banks involved have to accept to guarantee better services

100 to consumers. The 30 “Commitments for quality” were identiﬁ ed in order to satisfy four fundamental needs that customers have when dealing with banks: • a relationship that is easily transferable • straightforward, clear information • assistance when required • security.

Almost all of these initiatives were activated during the course of 2009 and monitoring tests were initiated towards the end of the year to check the results. In addition to the obligatory commitments envisaged by the Consortium, the Group has signed up for four voluntary initiatives as part of an even more positive approach to customer relations: • methods of assessing credit capacity • set times for cheque deposits • average response time for loan applications • list of services paid through the account.

101 “The Family”, Pietro Morando. Owned by Fondazione Cassa di Risparmio di Alessandria

102 PRODUCTS AND SERVICES

LENDING PRODUCTS TO COPE WITH THE CRISIS

Right from the start, the BPM Group has been involved in important initiatives to provide support for households and companies hit by the crisis. In addition to those foreseen in the protocol of intent relating to the Tremonti Bonds (see the chapter “Members and Shareholders”, page 147), other measures in favour of individual and corporate customers were also adopted.

In particular, in favour of individuals, the Group signed up for the Family Plan, a series of initiatives created together with ABI and other Italian banks to offer concrete support to those who are suffering the most from this period of crisis (new or growing families, workers and students). These initiatives were decided in 2009, but most of them were operative from 2010.

On 29 March 1927 Luigi Luzzatti, The painting of Pietro Morando, the founder and ﬁ rst chairman of Banca who depicts mainly scenes of everyday Popolare di Milano, dies in Rome. life or images of saints, lies somewhere between Realism and Metaphysical art.

103 Presidenza del Consiglio dei Ministri

BPM offre un tasso agevolato del 2,50%* per i già clienti e per chi vuole diventarlo, dire. fare. popolare. senza spese e commissioni.

Per informazioni: AGENZIE BPM www.bpm.it

(*) Esempio: prestito personale importo 5.000,00 euro, spese di istruttoria e spese incasso rata esenti, importo rata mensile € 88,74. TAN 2,500%, TAEG 2,526%. Prendere visione delle condizioni economiche mediante i Fogli Informativi disponibili presso ogni agenzia BPM (D. Lgs. n. 385/93). Il presente messaggio ha ﬁnalità esclusivamente promozionali. L’erogazione del ﬁnanziamento è subordinata alla normale istruttoria da parte dell’agenzia. Offerta valida sino al 15/02/2011 salvo esaurimento del Fondo di Garanzia Ministeriale.

104

INITIATIVES OF THE FAMILY PLAN RESULTS AS OF MARCH 2010

Suspension of mortgage repayments This is a facility that can be requested The loans involved in this if one of the joint owners of the house initiative are worth around loses their job, goes on state redundancy 4.2 million euro. beneﬁ ts or suffers a death in the family.

“Hope Loan” This is a type of loan that is available Given that this is an initiative thanks to an agreement between ABI and that was launched at the end the CEI (Italian Episcopal Conference) of the quarter, the amounts and has been envisaged for needy involved are not signiﬁ cant. families with at least three children or a disabled person, who have lost all sources of income and who are taking part in a re-employment project or starting up a business.

Advances on the state redundancy beneﬁ ts This is an initiative aimed at employees Disbursements are in excess working for companies throughout the of 4.2 million euro. country.

Loan for “New-born Babies” Financing to facilitate access to credit on Around one hundred households the part of households with a new child have been ﬁ nanced for a born or adopted during the three-year total of more than half a period 2009-2011. million euro. The Group has set aside 5 million euro for the period 2009-2011.

During the Thirties, as a consequence The Bauhaus is closed in 1933 of the crisis of 1929, the economy by the Nazi regime accused of being stagnates and the banking situation a coven of Communist intellectuals. has to be stabilised through government intervention.

105 As regards companies, SMEs in particular, Group banks with the involvement of the trade associations have taken part in a series of initiatives, including: • line of credit of 280 million euro to relaunch businesses, tourism and artisan enterprises in Lombardy and Piedmont, so that they can obtain low-interest loans. In 2009 and the ﬁ rst quarter of 2010, the loans granted by the Parent Bank came to almost 50 million euro; • new agreement with EIB (European Investment Bank) to improve the methods of access to loans and related conditions; • agreement with Assolombarda to grant services and loans to associates at advantageous conditions, backed by a surety offered by the Guarantee Fund.

1932 “Two Figures”, Mario Sironi. Owned by Banca Popolare di Milano

106 As conﬁ rmation of the close links that they have with the territory of their historical roots, the individual Group banks also implemented the following initiatives:

Banca Popolare di Milano increased its collaboration with the Cooperativa Artigiana Lombarda di Garanzia, setting aside a credit line of 30 million euro for anti-crisis loans.

Banca di Legnano joined the “Mondo del Lavoro” Guarantee Fund promoted by the Fondazione Provinciale della Comunità Comasca in favour of the employees of companies operating in the Province of Como.

Cassa di Risparmio di Alessandria set up a credit line of 40 million euro in collaboration with Conﬁ ndustria to provide support for the economic recovery and new investment. In collaboration with Conﬁ di, it joined the Fondo Regionale di Consolidamento to improve SMEs’ access to credit; in collaboration with the Diocesis of Alessandria and the Fondazione Cassa di Risparmio di Alessandria, it granted solidarity microloans to households without any source of income. It also created Microcredito, a zero-interest loan for redundant workers to help them meet essential costs, such as medical expenses or university fees, and “Tasse Insieme”, a type of loan that in 2009 allowed retail business customers to obtain the cash needed to pay their taxes and social contributions. Lastly, it began a partnership with the Alessandria construction industry to build a “Palazzo dell’edilizia” and to develop the construction sector.

In 1931 Banca Popolare di Milano During the Fascist period, Mario Sironi inaugurates its new head ofﬁ ce: achieves considerable fame for the the historical branch in Piazza Crispi principles of his painting which express (now Piazza Meda). order, clarity, simplicity and the plasticity of the ﬁ gures.

107 dire. fare. popolare.

dire. fare. solare. ﬁnanziamo i tuoi progetti per migliorare l’ambiente in cui viviamo.

108 LENDING PRODUCTS THAT PROMOTE ENVIRONMENTALLY SUSTAINABLE LIFESTYLES

By its nature and mission, the Group has always chosen to act ✓ responsibly and sustainably, integrating its business activities with a social and environmental dimension as a distinctive element. The projects and initiatives carried out to foster investments to reduce the environmental impact include:

ENERGY PROJECT A wide range of loans to support all needs relating to renewable sources, bearing in mind the different ﬁ scal treatment and incentives that can beneﬁ t individuals, legal entities, public entities and condominiums.

Photovoltaic Product: contributions to incentivise the production of electricity by installing photovoltaic systems through the “Nuovo Conto Energia” introduced in February 2007. In 2009, the Group gave Federﬁ di a credit line of 50 million euro to provide photovoltaic loans through the 40 ﬁ rst-level guarantee consortiums present in Lombardy. Ecology Package: loans for projects relating to renewable energy sources (wind, biomass, thermal solar, geothermal, co-generation, etc.) with the possibility of tax deductions for restructuring measures that permit a more rational use of energy.

109 110 ASSOLOMBARDA PROJECT In collaboration with Assolombarda, during 2009: • as part of the Ecology Package, an initiative to reward companies with ISO 14001 and EMAS certifi cation, offering better conditions than for companies that are not certifi ed; • certifi cation, an initiative designed to help companies to sustain the expenses needed to obtain and maintain quality certifi cation.

“MUTUO A-PROFITTO” An agreement with the Province of Milan to provide low-interest personal loans (up to 25 thousand euro) for interventions designed to reduce energy consumption in the home. This initiative is an innovative system of credit that makes it possible to discount all of the interest on the loans granted, co-ﬁ nanced 50/50 by the Province of Milan and BPM.

CLEAN AIR This is a speciﬁ c type of loan created together with the Municipality of Milan, to ﬁ nance the expense of converting condominium and company central heating systems to cleaner forms of energy.

More than 75 million euro of loans were granted by the Group in 2009 as part of the Energy project (1.4% of total loans).

During World War II, BPM hires The Thirties see the afﬁ rmation 301 people, 43.5% of them women, of Surrealism, an artistic movement that some of them replacing their husbands seeks to express in images the unreal who are at the front. and, at times, distressing world of dreams.

Photo on other page: photovoltaic solar panels installed at BPM’s “Bezzi 2” Services Centre in Via Massaua 6, Milan 111 FINANCIAL INCLUSION OF WEAK CATEGORIES

Faithful to its tradition as a bank that is sensitive to social questions, in 2009 the BPM Group created a series of tools, products and services to facilitate access to credit on the part of the weaker members of society (e.g. the young, immigrants, the otherwise-abled, short-term contract workers, etc.). The following are particularly worthy of mention:

PREVENTION OF USURY In 2009 BPM signed four special agreements in Lazio with Fondazione Wanda Vecchi, Adventum Association onlus, Associazione Ambulatorio Fondo Antiusura and Adiconsum, to help both individuals and companies.

BASIC BANKING SERVICE The PattiChiari Initiative includes a very simple current account, expressly aimed at customer segments that are approaching the world of banking for the ﬁ rst time, including foreigners.

“DIAMOGLI CREDITO” This involves a loan designed for university students between the ages of 18 and 35 to ﬁ nance their education and to provide easier access to credit: in fact, no speciﬁ c guarantees are required, only exam passes.

“FREELY” This is a line of credit dedicated to the world of the otherwise-abled and their families.

“EXTRAORDINARIO” This is a line of products and services dedicated to foreign citizens.

112 In 2009 there was an increase in the number of foreign customers (now more than 43,000) and in cross-selling, which conﬁ rms our Group’s ability to acquire business and to maintain good customer relations in this segment. We have also extended the money transfer service in collaboration ! Figures and ratios page 259 with Western Union (through which we have already carried out almost 30,000 transactions). We have also worked with CE.S.P.I. (Centro Studi di Politica Internazionale) on the publication of www. mandasoldiacasa.it, the ﬁ rst website in Italy for comparing the cost of making remittances to be recognised by the World Bank, thereby achieving the double goal of giving the market greater transparency as regards costs and fostering competition.

1959 “Aparecida with carnations”, Simone Gentile. Owned by Banca Popolare di Milano

113 dire. fare. popolare.

dire. fare. rispettare. Fondi Etica Sgr: i tuoi investimenti responsabili.

114 DIFFUSION OF SOCIALLY RESPONSIBLE INVESTMENT PRODUCTS

In the fi rst part of the year, the Italian asset management market confi rmed its negative funding trend, but thanks to an inversion during the second half, the negative balance for the entire year was limited to “only” 2.9 billion euro (the best fi gure for the last three

! Figures and ratios years) with total assets at the end of the year of 428 billion (having page 264 recovered 5.1% compared with the previous year).

In line with the general trend in asset management, in 2009, after three consecutive years of contraction, Italian ethical funds saw a slight increase in total assets (though less than 1%), despite net funding that was still negative for around 52 million euro.

Against this trend, Etica SGR’s Valori Responsabili funds managed to achieve positive net inﬂ ows of 65.5 million euro, which helped by the recovery in stock market prices, boosted total assets by 88.2 million (+38.5%).

“Magical Interior”, Giorgio De Chirico. Owned by Banca Popolare di Milano

115 The contribution made by the BPM Group also increased by 19.4% (from 66.6 million euro in 2008 to 79.5 million at the end of 2009), with the number of customers up by 34%.

CONTRIBUTION OF THE BPM GROUP TO TOTAL ASSETS MANAGED BY ETICA SGR (in millions of Euro)

Assets under management 2009 2008 2007 Etica SGR 317.4 229.2 236.6 of which BPM Group 79.5 66.6 72.6 (Group %) 25.1% 29.1% 30.7%

1961 “Mask”, Pablo Picasso. Owned by Banca Popolare di Milano

116 In recognition of the good performances posted in 2009 by Etica SGR’s funds, even better than those of the other ethical funds, for the second year running, two Valori Responsabili funds won the prestigious Lipper Fund Awards 2010 1.

Subscribing 1,000 euro to one of the Valori Responsabili funds means that 1 euro gets devolved to the Guarantee Fund for Microcredit in Italy (which at the end of the year amounted to some 540,000 euro). In 2009, thanks to speciﬁ c agreements with certain local authorities and local branches of Caritas, Banca Etica 2 made 25 loans to individuals and social co-operatives.

✓ In accordance with the commitments declared in the 2008 Social Responsibility Report, the BPM Group, in collaboration with Etica SGR, has launched a detailed programme for the development of socially responsible investment products. The project was launched in 2009 by carrying out market research into current and potential customers for ethical funds to analyse their various levels of sensitivity to questions of responsible ﬁ nance, identifying their motivations, expectations and degree of satisfaction.

1 Lipper, an international ﬁ nancial data provider, awarded its prizes to the Valori Responsabili Obbligazionario Misto fund for the best three-year performance in the Mixed Asset EUR Conservative-Eurozone category and to the Valori Responsabili Bilanciato fund for the best three-year performance in the Mixed Asset EUR Aggressive-Global category. 2 Banca Etica is the leading ethical ﬁ nance institution in Italy. Etica SGR, of which BPM is one of the founding shareholders, is the asset management company of the Banca Popolare Etica Group.

In 1941 Banca Popolare di Milano One who was always against Nazism publishes the ﬁ rst issue of “Il Tamburino was Pablo Picasso, whose works were Lombardo”, a monthly magazine burnt by the regime as an example for youngsters to promote savings. of degenerate art.

117 RESULTS OF THE 2009 SURVEY INTO ETHICAL FUNDS

This research showed that the market for ethical finance in Italy has a huge growth potential, even more so in moments of crisis: ethical investments have in fact shown themselves capable of innovating finance and winning back investors’ trust. It also revealed very high levels of satisfaction among holders of ethical funds. However, an analysis of potential subscribers highlighted the fact that they generally had limited knowledge of the product, while there was plenty room for development: 25% of those interviewed said that they were very interested in this type of investment. Results of the survey of ethical fund holders: • 51% heard about this product for the first time at the bank, whereas 16% read about it in the newspapers. After hearing about it, 66% looked for more information at their bank, 16% on Internet; • 67% chose ethical funds for their cultural and value aspects, 30% for economic reasons; • 55% have a very good opinion about the clarity and completeness of the information they receive, while another 30% give an opinion that is still satisfactory (6-7 out of 10).

118 SERVICES AND INITIATIVES FOR THE THIRD SECTOR

The relationship between the BPM Group and organisations of the Third Sector have been consolidated over the year and remained solid in 2009 as well. An important role is played in this sector by Faresolidale, a multifunctional service designed to provide a point of contact and exchange between non-proﬁ t and proﬁ t.

! Figures and ratios For further information on the products and services offered by page 261 Faresolidale and the initiatives carried out in 2009, see the chapter on Community, page 233.

1934 “Figure in the Mirror”, Donato Frisia. Owned by Banca Popolare di Milano

119 SERVICES ONLINE

On 1 November 2009 we completed the transformation of We@service SpA, the service company of the BPM Group, into a bank, WeBank SpA. With the birth of its ﬁ fth retail bank, the Group has reinforced its position in online banking, aiming to acquire new customers online by offering a complete banking service and consolidating the internet banking services for the territorial banks.

ONLINE CHANNELS: THE NUMBERS Anno 2009

Total Individuals Companies Trend 08-09 No. of online customers 430,829 346,898 83,931 28.2% No. of new customers 88,618 72,132 16,486 21.1% Total visits per year 26,083,345 14,804,616 11,278,729 26.1% Active customers at end of year 355,380 273,194 82,186 29.6% Active customers as percentage of total 87.5% 77.1% 97.9% 0.6 p.p. Requests for information (current account balance, movements, outcome of instructions, etc) 32,671,793 19,563,928 13,107,865 32.8% No. of banking instructions 17,382,133 3,021,937 14,360,196 –12.2% Online trading and fund transactions 610,010 610,010 – 33.1%

120 NEW SERVICES: MOBILE BANKING AND PHONE BANKING WeBank made available two new services during 2009 to extend the ways in which customers can contact the bank: • Mobile banking: a new method only for WeBank customers to operate independently through a personalised and optimised application. A service that permits a new use of the online bank, increasing its accessibility and interaction 1. • Phone banking: a new contact channel for Group customers providing another method of access to obtain information and to issue instructions.

ACCOUNTING DOCUMENTS ONLINE In 2009 the Parent Bank began a campaign to increase the number of customers who obtain their statements of account and accounting documents online (free of charge). This service not only allows the Bank (and customers) a signiﬁ cant cost saving in terms of the production, printing and delivery of paper documents, but for customers it is also a more immediate and safe way to receive their statement of account and securities in custody, accounting documents and contract summaries. RESULTS OF THE CAMPAIGN In the communication sent to customers, BPM also Of the 53,303 customers of the Parent wanted to emphasis the Bank who received the communication, 6,873 (around 13%) had activated the “environmental” aspect of service as of 2 January 2010. the service, given that it is

1 The application gives access to information and instruction-giving services; the information functions make it possible to consult not only the balance on the customer’s current accounts, but also the details of all movements; with the instruction-giving functions, it is possible to make bank transfers and to top up cell phones, prepaid charge cards and digital terrestrial TV subscriptions.

121 able to reduce substantially the amount of energy needed to produce and distribute such documents in paper form.

“CONTACT CENTRE 2.0” In 2009, WeBank launched its “Contact Centre 2.0” project, which is a new contact method that supplements the traditional communication channels (telephone, chat, e-mail). It is designed to gather suggestions and to resolve as rapidly as possible any operating anomalies pointed out by users/consumers on the main social networks and specialist forums present on the Net (e.g. FinanzaOnline and InvestireOggi).

The suggestions are collected by New Media Specialist (Marketing & Communication Department) during its routine daily monitoring and, if considered important, they are passed on to the Contact Centre

1948 “Shapes on the Sea”, Fausto Pirandello. Owned by Banca Popolare di Milano

122 which elaborates and communicates a reply, public or private, on the social media used by the customer. If the customer then provides further details, the conversation can continue on the Contact Centre’s “internal” channels, such as e-mail and telephone.

The Contact Centre therefore makes it possible to manage all of WeBank’s customers independently from the communication channel that they use (i.e. including online tools that are external to WeBank); it also enables the bank to build up a frequent dialogue with them and to acquire authoritativeness and skills in Web 2.0 and the advantages that businesses can obtain by using such tools.

SECURITY WeBank has always been sensitive to questions of security, identifying a series of countermeasures to defend itself against attacks, with solutions both for the user and for the bank’s platforms.

The Security Programme, which was launched in 2008 to ﬁ ght the growing frequency of online fraud, saw new implementations in 2009: • Welcome page, a protected, secure area where users are invited to interact with their bank by completing a series of basic procedures before starting to use their account; • Setting up the Security Rapid Intervention unit to deal with hacker attacks and suspected cases of fraud;

In the years following World War II, After World War II, there is no lack of Banca di Legnano takes part in the artists who draw inspiration from the reconstruction and contributes towards various painting movements, as in the the development of Italian industry case of the Expressionist Realism during the economic boom. of Fausto Pirandello.

123 • Antiphishing service to identify and obscure pirate websites; • Handling reports, black list, prepaid cards and suspect names (with block on opening account or top-up).

1948 “Per ordigni”, Afro Libio Basaldella. Owned by Fondazione Cassa di Risparmio di Alessandria

124 UPGRADING SELF SERVICE TOOLS

To further facilitate customer access to basic services, the Parent Bank has continued to install self service terminals (SSTs) at branches. They allow customers to carry out a series of operations on their own (24 hours a day throughout the year) by using their ATM card. This frees up tellers from certain routine activities, allowing them to devote more time and skill to those services where the human element and professional experience are fundamental.

To encourage businesses to use these tools as well, we created the Self Service Card, which permits them to deposit cheques and cash.

The following initiatives were also launched to help customers use the new service: • a communication with “instructions for use” and a list of all of the branches with SSTs; • a member of staff appointed as “Migration Manager” in each of the branches with an SST to explain to customers how the new tool works; • a space on the Bank’s website dedicated to SSTs (www.bpm.it/sitioperativi/sit_aree_self_service.shtml).

THE NUMBERS AT THE END OF 2009

SSTs installed: 41 – Migration Managers: 41 Self Service Cards: 2,169

After World War II, Banca Commerciale Before taking a more abstract Italiana becomes the majority expressionist line, immediately after shareholder of Banca di Legnano. the war Afro Libio Basaldella goes through a phase that is stylistically tied to the dictates of postcubism.

125 OPERATING IN CONTROVERSIAL MARKETS

During the course of 2009, under Law 185/90 on the import, export and transit of arms, we registered the following operations: • extensions were granted for two transactions (authorised in previous years and also present in the following table in imports relating to 2006 and 2007) for a total of 4.2 million euro for the export of avionic spare parts and components; • 120,000 euro was collected as part of the programme of intergovernment co-production of EFA military goods (collections deriving from this transaction are not subject to prior authorisation);

1955 “The Open Hand”, Le Corbusier. Owned by Fondazione Cassa di Risparmio di Alessandria

126 • the Group was asked for only one new authorisation for a temporary import worth 2 million euro involving the repair of the components of a transport helicopter belonging to the Greek Ministry of Defence.

These operations were carried out in accordance with the current policy that BPM adopted in 2005. It is more restrictive than Law 185/90 but does not totally exclude such transactions, allowing them after authorisation by the General Manager, providing they are considered in line with the spirit of an “unarmed bank” (a conception of bank that operates with restrictive and selective criteria both for the types of arms exported and for the countries to which these arms are being sent).

In accordance with the commitments declared in the 2008 Social Responsibility Report, the current policy on arms is being reviewed ✓ with the intention of going beyond a purely bureaucratic assessment of individual transactions to enter into the merit of their real meaning in terms of social responsibility.

TECHNICAL OPERATING TREND 2004-2009 (thousands of euro)

Year No. of transactions carried out Amounts authorised 2004 32 57,946 2005 31 43,638 2006 14 18,216 2007 9 4,858 2008 – 49 2009 1 3 6,219

1 Including two prior year extensions worth a total of 4.2 million.

The ﬁ rst branch of Cassa di Risparmio Alongside his work as an architect, di Alessandria opens in that city towards the end of the Fifties Le Corbusier in 1952. develops a style of painting that becomes more and more personal through images and colours that are increasingly recognisable.

127 CORPORATE IMAGE

The programme in 2009 for repositioning BPM’s corporate image also involved Cassa di Risparmio di Alessandria: November saw the launch of Cassa di Risparmio di Alessandria’s new corporate image with the new logo being presented during the introductory convention: “Un sorriso per crescere” (a smile to grow), which combines the soul of a bank with traditional links to the community and to territory of the Group. The website www.cralessandria.it has been completely revamped and improved in form, navigation and image.

128 Also worth mentioning is WeBank’s advertising campaign for the launch of the new bank. The slogan “WeBank, la banca tutta polpa” (WeBank, the bank that is all ﬂ esh) encloses the essence of WeBank’s philosophy: a bank that is able to offer a complete, efﬁ cient, quality service.

LA BANCA TUTTA POLPA.

L’efﬁcienza di Webank la misuri dall’assenza di processi e di costi superﬂui. Una banca in grado di offrirti servizi eccellenti e vantaggiosi, zero spese e tassi di interesse per i tuoi risparmi in linea con i parametri della Banca Centrale Europea. Senza promesse ingannevoli e asterischi. Una banca attiva 24 ore al giorno e 365 giorni all’anno, che ti segue ovunque su pc e cellulare. Sicura, trasparente e veloce. Non restare indietro, vieni con noi. Webank. Quanto vale il tuo tempo?

129 130

131 1987 – “Piazza del Duomo with Coachdriver”, Walter Molino. Owned by Banca Popolare di Milano ID CARD

96,691 BPM shareholders, including

Figures at end 2009 ■ 50,823 members with 26.8% of the share capital ■ 45,868 non-members with 73.2% of the share capital. More than 45% of the shareholders live in Lombardy, mainly in Milan and the Province of Milan.

TOTAL SHARES 415,034,231

■ Non-Members 73.2%

■ Members 26.8%

TOTAL SHAREHOLDERS 96,691

■ Members 52.6% ■ Non-Members 47.4%

! Figures and Ratios pages 265-266

132 MEMBERS AND SHAREHOLDERS

As a listed co-operative bank, we attribute a fundamental role to the relationship we have with our members and other shareholders, in accordance with our mission, our guiding principles and the needs of the other stakeholders.

We undertake to maintain and to develop the traditional relationship of trust and transparency that we have always created with our members and all of our shareholders, both through constant and effective communication and involvement, and by reinforcing the mutualistic proﬁ le and exchange that is a key feature of this relationship, while respecting the regulations governing listed companies.

With a view to increasing our identity as a large co-operative bank deeply rooted in its territory and close to the needs of local communities, we intend to enlarge the shareholder base, particularly by developing policies that give our customers incentives to become or remain members of the Bank and to raise their sense of loyalty to it. In this connection, 2009 saw the launch of the Members’ Project, which is reserved for all members, especially those that are also customers of BPM and the other Group banks.

133 134 BPM’S SHARE CAPITAL

SHARE CAPITAL STRUCTURE

BPM’s share capital is made up of registered shares, that cannot be split, with a par value of 4 euro. The ownership of shares gives shareholders exclusively capital rights, such as dividend and option rights. Shareholders of BPM who apply and are accepted as members are recorded in the Register of Members, thereby obtaining the right to participate in the life of the Bank (page 139).

At the end of 2009, the capital of BPM is held by 96,691 shareholders, ! Figures and Ratios pages 265-266 an increase of 3,870 with respect to the previous year (+4.2%), made up of 50,823 members and 45,868 non-members.

The composition and analysis of the share capital refl ect certain aspects that are peculiar to co-operative banks: • a prevalence of small shareholders who are individuals (97.7%), rather than legal entities (2.3%), confi rming the importance of their personal profi le and the mutualistic relationship between members; • a high level of fragmentation as a consequence of the rule that limits share ownership to not more than 0.50%, excluding Undertakings for Collective Investment in Transferable Securities (UCITS); • a high number of employee members and of customers, most of whom are also members; • a geographical concentration of shareholders in the areas where the Bank has its branches, particularly with regard to members; there tends to be a higher proportion of shareholders who are not members in the other regions and abroad.

Photo on other page: “2009 General Meeting of the Members” 135 By way of conﬁ rmation of BPM’s status as a listed bank and of the market’s interest in the Group, institutional investors hold a rising percentage (currently 43%) of the share capital. Within this category, foreign investors represent around 32% of the entire share capital, which is slightly up on 2008 (when they held around 30%).

The shareholders with more than 100,000 shares, who represent 56.6% of the share capital, are the two strategic partners, Fondazione Cassa di Risparmio di Alessandria and Crédit Mutuel Group (CM-CIC). Their presence demonstrates how BPM seeks alliances in terms of international commercial arrangements, as well as partnerships with ﬁ nancial entities that have medium/long-term investment proﬁ les.

STRUCTURE OF THE SHARE CAPITAL MADE UP OF 415,034,231 SHARES (BREAKDOWN BY GROUPINGS AND RELATED % INTEREST)

■ Institutional Investors 1 177,622,101 shares (42.8%) ■ Large Shareholders Non-Institutional 1 34,415,145 shares (8.3%) ■ Partner Members 2 22,773,295 shares (5.5%) ■ Other Shareholders 180,223,690 shares (43.4%)

NB: Institutional Investors include Qualiﬁ ed Operators and Undertakings for Collective Investment in Transferable Securities (UCITS).

1 Institutional Investors and Large Shareholders with 100,000 shares or more. 2 Shareholders and Partner Members: 4.99% CM-CIC Group, 0.50% Fondazione Cassa Risparmio di Alessandria.

136 LIMITS ON SHARE OWNERSHIP

The current rule in the banking sector (art. 30 of the Consolidated Banking Act), which is reﬂ ected in art. 21 of our Articles of Association, establishes 0.50% of the share capital as the limit on share ownership, except for UCITS.

At the end of 2009, based on this rule:

• BPM contested 22 shareholders who had exceeded this threshold;

• institutional investors who, according to the information available to the Bank and movements reported by CONSOB, held a “relevant” shareholding, i.e. higher than 2%, included the following:

RELEVANT SHAREHOLDERS AT 31 DECEMBER 2009

Shareholder Number % held of shares Caisse Fédérale du Credit Mutuel Centre Est Europe – CM (CM-CIC) Group (held by various group companies) 20,710,208 4.990

J. P. Morgan Group (held by various group companies) 15,516,434 3.738

BlackRock Inc. (held by BlackRock Investment Management Ltd., a subsidiary) 13,527,323 3.259

Alliancebernstein L.P. (held by various group companies) 8,383,993 2.020

Dimensional Fund Advisors L.P. (held by subsidiary company/funds in certain individual portfolio management schemes) 8,309,132 2.002

137 TERMS OF ADMISSION TO MEMBERSHIP, EXCLUSION AND RIGHTS

According to the rules on co-operative banks, membership status is not acquired just by owning shares, but by being recorded in the Register of Members (approval clause); those who do not ask to be registered or those that the Board of Directors do not approve for registration, giving the reason why, remain simple shareholders and only enjoy capital rights, not the right to vote. If rejected, an aspiring member can appeal to the Board of Arbitrators according to the rules laid down in the Articles of Association.

1954 “Composition with horse”, Marino Marini. Owned by Banca Popolare di Milano

138 The members of BPM, both individually and collectively, have ample rights (see the table that follows) and instruments for their protection (e.g. quorums for general meetings), which were recently widened under the amendments made to the articles of association approved in December 2008 relating to the reduction of the so-called “majority premium” (i.e. the number of directors to be attributed to the list that obtains the highest number of votes at the General Meeting).

MEMBERS’ RIGHTS

Individual Collective

• to take part in General Meetings; • to request the calling • to speak on any topic on the of a General Meeting Agenda and to make proposals (proposed by at least about them; 2,000 members with voting rights at the date • to vote at General Meetings (only the request is presented); one vote per head whatever the number of shares held); • to present a list for the appointment of the • to be represented at General members of the Board Meetings by another member with of Directors or Board a written proxy; of Statutory Auditors • to withdraw according to the rules (proposed by at least laid down by law; 300 members or a • to participate in presenting a number of members who voting list for the appointment of in total represent at least directors and statutory auditors; 0.5% of the share capital • to represent a maximum of and who have been two other members at General recorded in the Register Meetings, with written proxies of Members for at least (excluding employee members 90 days). and directors of Group companies).

The ﬁ rst elections of employee One of the protagonists of Italian art members’ representatives take after WWII is Marino Marini. place in 1952. The favourite subjects of his sculptures, horses and riders, can also be seen in his paintings.

139 The terms of admission and exclusion from membership are laid down not only in the articles of association (arts. 11 and 16), but also in the “Framework resolution for rules concerning the admission and handling of members” (see the chapter on Governance, page 67) which among other things: • provides for the setting up of a “Members’ Relations Commission” which reviews applications for admission to membership, cases of exclusion from the Register of Members and waivers on the part of the Bank of its preference guarantee on BPM shares; • defi nes the requisites and procedures for the admission of new members, both individuals and legal entities. Admission to membership is subject to sharing the Bank’s purposes, its objective interests and the spirit of its co-operative status, which assumes ownership of at least 100 shares and a written undertaking to maintain this minimum number of shares over time; • establishes the conditions and procedures for excluding a member; • outlines the criteria for maintaining the Register of Members and Register of Shareholders, providing for a specifi c “File of Members’ Addresses” which is available for consultation and the issuance of extracts to members who ask for them. • establishes the procedures for granting any special treatment or benefi ts to members.

During the course of 2009, to facilitate the delivery of requests for admission to membership by shareholders with accounts at other intermediaries and by shareholders who are customers of online

140 banks, this resolution was integrated with the possibility of delivering the application personally at any Group branch. The considerable increase in applications for membership in 2009 - four times more than the previous year and all accepted - conﬁ rms the growth trend of the last three years, strongly inﬂ uenced by the measures taken by the Group to sustain the declared commitment to broaden the shareholder base.

1,943 names no longer qualiﬁ ed to be members, mainly because ! Figures and Ratios page 266 they no longer hold shares. Four were readmitted as their minimum shareholding was ascertained after the resolution to exclude them in January 2009.

1932 “Landscape with Lake”, Adriano Spilimbergo. Owned by Banca Popolare di Milano

141 1954 – “Fisherman on the Adda”, Angelo Del Bon. Owned by Banca Popolare di Milano

142 VALUE CREATION AND RETURN ON CAPITAL

BPM has been listed on the Italian Stock Exchange since 1994 and is one of the 40 larger Italian companies that make up the FTSE MIB index.

As a listed co-operative bank and respectful of its mission, BPM undertakes to combine the characteristics of a co-operative, such as attention to interpersonal relations, the mutualistic intention versus the members (internal mutuality) and the reference territory (external mutuality), with those of a listed company, such as attention to market rules, operational efﬁ ciency and proﬁ tability.

In a difﬁ cult year like 2009, thanks to good internal management by the Bank, government programmes and the expansionary policy adopted by the Central Banks to stem the effects of the crisis, BPM achieved positive results, better than the previous year, which have been rewarded by the market.

The BPM stock has in fact turned in a performance of +20%, considerably better than the +14.8% posted by the reference index of Italian banks (FTSE Italia All Share Banks), ﬂ uctuating between a

The Small Loan Section is set up The Chiarism movement, which prefers in 1954 to pay low-interest loans painting on clear backgrounds that are to respond to the needs of artisans intimate and not at all monumental, has and small industries. as its main founders Angelo Del Bon, Adriano Spilimbergo and Umberto Lilloni.

143 low of 2.77 euro (on 9 March 2009) and a high of 5.82 euro (20 October 2009), with average daily volumes of just over 3 million shares traded. At the end of 2009, the stock was shown at 4.98 euro, giving the Bank a market capitalisation of 2.1 billion euro.

2009 2008 2007 No. shares in circulation 415,034,231 415,034,231 415,034,231 Closing price of the year (euro) 4.978 4.182 9.268 High of the year (euro) 5.818 9.094 13.874 Low of the year (euro) 2.770 3.780 9.049 Market cap. at year-end (in millions of Euro) 2,066 1,736 3,847

The level of net proﬁ t for 2009 and the capital solidity of the Group (see the Economic Report, pages 78-81) allowed the Board of Directors to propose to the Shareholders’ Meeting the distribution of a dividend of 0.10 euro, with a pay-out of 40%.

144 2009 2008 2007 Shareholders’ equity (in thousands of Euro) 3,788,851 3,177,278 3,151,415 Net proﬁ t for the year (in thousands of Euro) 103,553 75,269 323,761 Dividends resolved (in thousands of Euro) 41,504 41,503 166,014 Earnings per share (Euro) 0.25 0.18 0.78 Price/Earnings (P/E) 18.1 23.1 11.9 Dividends per share 0.10 0.10 0.40 Yield per share 1 2.21% 1.52% 3.56% Equity per share (euro) 9.13 7.66 7.59 Price/book value (P/BV) 0.49 0.55 1.23

1 Ratio between the dividend per share and the average price of the shares in 2009.

PERFORMANCE OF THE BPM STOCK IN 2009

8,0 25.000 High

7,0 20.000

6,0

15.000 5,0 Low Euro 4,0 10.000

3,0

5.000 (in thousands of shares) Volumes 2,0

1,0 –

9 9 9 1-09 -09 -09 -09 2-09 30-12-0812-0 21-0130-01-0910-02-0919-02-0902-03-0911-03-0920-03-0931-0309-04-0922-04-0904-05-0913-05-0922-05-0902-06-011-06-0922-06-0901-07-0910-07-0921-07-030-07-0910-08-0919-08-0928-08-0908-09-0917-09-0928-09-0907-10-0916-10-0927-10-0905-11-0916-11-025-11-0904-12-0915-1228-1

Volumes BPM DJ STOXX BANKS

145 During the year, the following measures were taken to increase the Group’s Core Tier 1 ratio to over 7.5%: • issue of ﬁ nancial instruments subscribed by the Economic and Finance Ministry for an amount of 500 million euro (so-called “Tremonti Bonds”). • issue of a bond with obligatory conversion into shares of the Bank (so-called “Convertendo”), subscribed for 406 million euro; • a public purchase offer for the innovative capital instruments issued by companies of the BPM Group, the acceptance of which reached 42.09% of the total nominal value of Euro 460 million.

Further details on these operations can be found in the prospectuses, press releases, 2009 ﬁ nancial statements and interim reports published on the website.

c. 1950 “Red House in Corso Venezia”, Umberto Lilloni. Owned by Banca Popolare di Milano

146 TREMONTI BONDS AND THE “CONVERTENDO” BOND To cope with the delicate situation caused by the violent crisis that hit ﬁ nancial markets and the economy in 2008 and which today is still not over, the governments of the various countries implemented a series of interventions in favour of households, labour, employment and businesses.

In Italy, the measures in the anti-crisis decree launched by the Government in November 2008 included, among other things, the possibility for banks to issue Tremonti Bonds (art. 12 Decree 185/08), wholly subscribable by the Economic and Finance Ministry (EFM) after taking a series of commitments laid down in the protocol of intent. By strengthening the capital of banks, the Government’s intention was to boost the amount of credit being offered to households and SMEs.

BPM issued ﬁ nancial instruments to the Ministry for a total of 500 million euro, undertaking on behalf of the Group banks to comply with the following commitments contained in the protocol: • to make available to SMEs in the three-year period from 2010 to 2013 incremental loans averaging 7% per year compared with the previous two years, maintaining an adequate level of asset quality; • to contribute 7.5 million euro to the endowment of the guarantee fund for loans to SMEs; • to suspend repayments of house-purchase mortgage loans for 18 months (instead of the 12 months foreseen in the EFM agreement), in cases where the borrower has been put on redundancy beneﬁ ts, lost their job or has the requisites for the one-off amount foreseen in Decree 185/08; • to maintain for the entire duration of the agreement the initiatives for “support to workers and businesses in crisis situations” agreed with the provinces of Milan, Como, Varese and Alessandria; • to adopt a Code of Ethics containing, among other things, clauses regarding the remuneration of top management.

1 Further details on the ﬁ rst four points can be found in the section on Customers, pages 103-107.

147 One of the capital strengthening measures implemented by BPM in 2009 was the issue of a senior bond loan with automatic conversion into the Bank’s ordinary shares, together with the assignment of warrants free of charge.

This operation forms part of the strengthening of the core element of the Bank’s Tier 1 capital so as to allow the Group to operate in the best way possible in a context of growing uncertainty, being able to rely on a stable, high quality capital base.

The bonds in question have an gross annual coupon of 6.75% and automatic conversion on maturity (1 June 2013) in BPM ordinary shares valued at the average market price, with a minimum conversion price of 6 euro and a maximum of 7.

The “Convertendo” bond loan will help repay the EFM securities within four years from when they were issued.

The total amount issued came to 406 million euro, together with 4,062,851 warrants that will give the right to subscribe, between 1 May 2013 and 1 June 2013, up to 36,565,659 BPM ordinary shares at a price of 8 euro per share (for a maximum of 292 million euro).

148 RELATIONS WITH MEMBERS, SHAREHOLDERS AND THE FINANCIAL COMMUNITY

Versus the members, all of the other shareholders and the ﬁ nancial community in general, the Bank undertakes by means of effective and constant communication and involvement to maintain and develop the traditional relationship of trust and transparency that it has always had with them. When communicating, the Group applies the principles of fairness, clarity, continuity, accessibility and timeliness of information. Various different tools are used, as explained in the table on the next page.

A members’ reception area is also being planned for the head ofﬁ ce in Piazza Meda 4, Milan, with a view to providing information and gathering any suggestions members may have.

1966 “Porta del Sol”, Afro Libio Basaldella. Owned by Banca di Legnano

149 COMMUNICATION CHANNELS FOR MEMBERS AND SHAREHOLDERS Financial statements These periodically give a summary of the Group’s (annual report, half-year report, activities, focusing mainly on the fi nancial results. quarterly reports) Social Responsibility Report This is an annual summary of the Group’s activities in the fi eld of Corporate Social Responsibility, with an emphasis on the relationship with stakeholders. Letter to the members This letter is sent out prior to each General Meeting and shareholders to highlight the principal events of the year and to encourage “informed” participation on the part of the members, as well as to provide instructions for those wishing to attend the General Meeting. Websites They are updated constantly with announcements, news and documents, many also in English. Dedicated structures • External Relations Offi ce - handles relations with the press and maintains contact with institutions, associations and entities to enhance the Bank’s image. • Investor Relations – handles relations with the fi nancial community (analysts/institutional investors). • Members’ Relations – handles relations, initiatives and all activities relating to the members through the special desk at the head offi ce in Piazza Meda 4, Milan. Freephone no. Responds to requests for information from members. 800 013 090

150 FINANCIAL COMMUNITY

Dealings with the ﬁ nancial community are generally handled by the Investor Relations function, which ensures that the market has information that is punctual and useful to ensure that the Bank is valued correctly. Frequent contact, both by telephone and through direct meetings at the head ofﬁ ce or elsewhere in the main European and American marketplaces, has the dual objective of increasing the level of knowledge of the Group in Italy and abroad and fostering a higher number of current and potential shareholders.

During the course of 2009, Investor Relations had contact with the fi nancial community on 791 occasions, in most cases involving top management as well. While there were fewer meetings outside of the head offi ce, because of the particular moment being experienced by international markets, contacts at head offi ce were much more frequent, demonstrating growing interest versus the Group and its ongoing willingness to maintain a lively dialogue with the fi nancial community.

CONTACTS WITH INSTITUTIONAL INVESTORS AND FINANCIAL ANALYSTS

Meetings with Presentations to the individual investors ﬁ nancial community and small groups

BPM’s Head Banking BPM’s Head Banking TOTAL Ofﬁ ce Conference Ofﬁ ce & Road Show

2009 141 149 324 177 791

2008 108 211 240 260 819

2007 147 169 122 389 827

151 Interest in the Group is also conﬁ rmed by the fact that a considerable number of analysts periodically carry out studies and research on BPM (there were 20 at the end of 2009: a complete list can be found on www.bpm.it in the section entitled “Investor Relations- Analyst coverage”) Their valuation of the BPM stock - slightly lower ! Figures and Ratios page 267 than the previous year - was obviously conditioned by the crisis that continued to hit the banking sector in 2009. Moody’s revised its BFSR (Bank Financial Strength Rating) from “C” to “C–” for essentially the same reasons.

OOPINIONSPINIONS EXPRESSEDEXPRESSED BBYY AANALYSTSNALYSTS

22009009 22008008 22007007 HHoldold 550.0%0.0% 447.6%7.6% 444.4%4.4% SSellell 225.0%5.0% 223.8%3.8% 227.8%7.8% AAdddd 225.0%5.0% 228.6%8.6% 227.8%7.8%

c. 1950 “Snowfall at Porta Romana”, Umberto Lilloni. Owned by Banca di Legnano

152 RATINGS

Each year, the Bank submits itself to the judgements of the main rating agencies and other national and international organisations, so that it can assess its performance more accurately compared

! Figures and Ratios with its competitors. page 266

In 2009, the three top rating agencies again expressed their evaluations of the Bank’s solidity, in all cases conﬁ rming1 their short- and long-term ratings. As regards the Outlook, Standard & Poor’s and Fitch Ratings revised their opinion from “Stable” to “Negative”, because of the expectations of a deterioration in asset quality and the increasing pressures on revenues caused by the effects of the crisis that has hit the entire banking sector.

1 At 31 December 2009.

With the absorption of Banca Popolare Lilloni’s painting stands out for its di Roma (1957) BPM starts expanding emotional lyricism and his almost outside of Lombardy. evanescent landscapes.

153 154 In addition to these assessments of the Bank’s fi nancial and capital results, for some years BPM has also been evaluated with regard to its performance in the fi eld of corporate social responsibility, both by ethical rating entities and by other companies and associations (see the following table as regards the evaluation of the Group for the purposes of the Dow Jones Sustainability Index). The 2009 results show a general improvement on the past, highlighting strengths in the fi eld of social reporting, corporate governance, risk management and industrial relations, while there is room for improvement in environmental matters.

RESULTS OF THE DOW JONES SUSTAINABILITY INDEX COMPARED WITH THE SYSTEM

Total score

100

90 90 80 89 86 84 70

60 73 69 67 50 63 40 52 51 30 48 48 46 20 41 42

2006 2007 2008 2009

BPM Avg Score Best Score Lowest DJS

Key: • BPM: score obtained by BPM • Avg Score (Average Score): avg score of the banking system • Best Score: best score obtained by the banking sector • Lowest DJSI: lowest score on the index

Photo on other page: 2009 General Meeting of the Members, secret ballot area 155 INVOLVEMENT OF MEMBERS

PARTICIPATION IN MEMBERS’ MEETINGS

One of the prerogatives of co-operative banks is the high level of participation at General Meetings because of the one-man-one-vote system: in fact, each member has the right to express only one vote, quite apart from the number of shares owned.

General meetings are not only the key occasion to meet and discuss matters. They are above all a moment when each member has a chance to take part in the Bank’s corporate governance by debating all important decisions of an ordinary or extraordinary nature and then casting the vote that is given to them by the law and the articles of association.

2009 General Meeting of the Members – members requesting to speak

156 To encourage widespread and informed participation by the members at General Meetings - a value for the member but also for the Bank, which in this way demonstrates that it shares and is attached to the principles of the co-operative model, in compliance with the rules of law and the articles of association - various tools and methods have been prepared to allow the members to participate with full awareness of the matters in hand and for the proceedings to be carried on in an orderly fashion: specifi c regulations for general meetings, advance publicity of the candidatures for directors and offi cers (now expressly regulated also by CONSOB), the letter to members on signifi cant events (see page 150), comfortable surroundings with adequate reception facilities.

This model of “corporate democracy” is also helped by the list voting system which allows minority groups at be represented, thereby reinforcing even more the relationship with BPM’s varied shareholder base.

The General Meeting in April 2009 had the highest participation for ! Figures and Ratios page 267 the last 10 years, with more than 10,000 members present either physically or by proxy. They took part in order to decide on various matters of ordinary administration, such as the approval of the 2008 annual report and the appointment of new directors and ofﬁ cers (Board of Directors, Board of Statutory Auditors and the Arbitration Committee), as well as on matters of extraordinary administration, such as the approval of an operation to strengthen the Bank’s capital (issue of the Bond Loan “Convertendo” BPM 2009-2013 – 6.75% cum warrants on BPM ordinary shares 2009-2013).

157 158 Voting and scrutineering were carried out electronically for the fi rst time, using “totems” with touch-screen videos. This made it possible to vote very rapidly (more than 9,700 voters - physical and by proxy - in fi ve hours) and to know the results within half an hour of closing the vote (guaranteeing confi dentiality and certainty of the fi gures, as well as saving a great deal of time and money).

Moreover, in order to make the members more aware of environmental matters and to get them involved in the new “BPM Wood” project launched in 2009 (see the chapter on Environment, page 255, for further details), it was decided to offset the CO2 emissions of the 2009 AGM by planting more than 100 trees in Milan’s North Park and to give a small maple tree to everyone present as a symbolic gesture to demonstrate the Group’s attention to the environment.

Multimedia terminal with touch-screen video for electronic voting

Photo on other page: BPM Members Club Point – 2009 General Meeting of the Members 159 ✓ MEMBERS’ PROJECT In line with the mutualistic principles of the co-operative banking movement, during 2009 the Board of Directors approved the Members’ Project on the proposal of the Members’ Relations Commission: it is a long-term project to create a vehicle for transmitting the value of belonging to a co-operative and the importance of the member’s role, by relaunching policies that pay more attention to members’ needs, also as a way to expand the membership base and maintain their loyalty.

The Project, which has been operative since July 2009, has replaced the “Linea Valore Soci” and seen the creation of the BPM Members Club, which offers all members a series of beneﬁ ts of a banking and non-banking nature, organised in various areas of interest known as “worlds”. For example:

Bank World Points World Non-Banking World

Special prices for certain Additional points Services and benefi ts banking products and awarded as part of the related to healthcare, services: personal loans, “Counting on you” fi delity wellness and leisure at mortgage loans, plan, already operative affi liated structures. Cartimpronta credit cards, for all customers. securities custody and insurance products.

160 Further details on the advantages offered to members can be found at www.clubsocibpm.it, contacting the freephone no. 800 013 090 or sending an e-mail to: [email protected].

In its fi rst six months, the BPM Members Club has been consolidated both from a structural point of view - with particular attention to the technology and content of the website - and from a quality point of view, thanks to the ongoing careful selection of providers with whom to sign agreements and affi liations of a non-banking nature. A good information campaign, together with a review of the banking terms and conditions and the choice of healthcare and leisure affi liations, generated a great deal of attention and interest in the project from

Website for members: www.clubsocibpm.it

161 members, shareholders and customers. Their response has been positive and, slowly but surely, this is leading to the increase in membership applications that we were hoping for.

The system for managing members’ data - currently based on developing a system of direct communication of e-mail addresses and mobile phone numbers through the website by the members themselves - will make it possible to improve communication in terms of greater ease and speed of use; this will also make it possible to classify the membership so that they can be sent targeted announcements, saving a great deal of money compared with traditional printed communications.

Organising events for members is meant to create occasions to get to know each other better and to reiterate the fundamental values of Banca Popolare di Milano as a co-operative with a strong participatory, mutualistic and ethical orientation. These are meetings in various areas of interest, the fi rst of which (planned for the beginning of 2010) will be a charity show, during which prizes will be awarded to particularly loyal members, in the of the oldest female member, as well as a prize draw for all those present. Lastly, to provide effective advice and promotion for the individual initiatives, at the AGM members will fi nd an area dedicated to the BPM Members’ Club, where they will be able to meet not only those in charge of the Members’ Sector, but also representatives of the pertinent Bank functions and certain affi liated suppliers.

162 Photo on other page: 2009 General Meeting of the Members - glimpse of the symbolic representation of the “BPM Wood” created in Milan’s North Park. 163 MEMBERS’ ASSOCIATIONS

With a view to enhancing the contribution that the members can make to the life of the Bank, BPM’s strategy in recent years has been to encourage their aggregation in associations that represent similar interests, though still part of the wider framework of interest of the Bank and respectful of the co-operative model. The Bank, represented by the Chairman and/or the Members’ Relations Commission, maintains a dialogue with the associations, assesses any requests or proposals that they make, and responds to any questions about particular aspects of the Bank.

At present, three associations are represented on the Board of Directors: • The “Friends of Banca Popolare di Milano”, for those members who are also employees; • “Together for Banca Popolare di Milano” or “Assoinsieme”, which is for members who are former employees or customers; • The “Non-BPM Staff Members Committee”, which represents above all members who are not employees.

The Bank maintains ongoing relations with each of these associations, using various methods to keep them involved and to ensure a continuous dialogue. During the course of 2009, in particular, the Members’ Relations Commission, on a mandate from the Board of Directors, initiated a listening and discussion activity by means of meetings initially with the individual associations, later with all of them together.

164 The Bank’s intention is to continue this type of debate on the topics that most interest the individual associations. Moreover, the Bank also makes certain facilities available to the associations to help them perform their activities and help members get to know each other: meeting rooms at the ofﬁ ces in Via Mazzini, a stand at the AGM and certain sections in the Social Responsibility Report. The following pages have in fact been prepared by each of the associations, explaining their characteristics, objectives and activities during 2009 1.

1 Each association is responsible for the content of the texts that they write.

1957 “Il laghetto di Milano”, Umberto Lilloni. Owned by Banca Popolare di Milano

165 FRIENDS OF BANCA POPOLARE DI MILANO Proﬁ le of the Association The “Friends of Banca Popolare di Milano” Association was set up as an evolution of the previous organisations that represented staff members. The purpose of the Association is to spread the co-operative culture, enhance the link between the Bank and its territory and local economy, stimulate participation at corporate events and investment in BPM shares.

The Association was set up (April 2003) at the same time that the amendment was made to the Articles of Association to introduce the list voting system for the renewal of the Bank’s governing bodies. The activities carried on to date have demonstrated over the years the importance of the role of staff members, who have always contributed to the Bank’s good results and to its growth with their work, their participation in the life of the company and their investment in BPM shares. The representativity of the Association has grown over the years, helped by the fact that it has been joined (as sustaining members) by members’ families, by the employees of other Group companies and by all of the members who share a common interest in maintaining and developing BPM’s co-operative status.

ID CARD Figures at end 2009

Name of the Association: Friends of Banca Popolare di Milano (which can be abbreviated to “Friends of BPM”) Year of constitution: 2003 Registered ofﬁ ce: Via S. Paolo, 16 – Milan Number of members at 31 December 2009: 7,259 Chairman: Franco Zaffra

166 Aims of the Association The principal aim of the Association is to protect the interests of all of its associates and sustaining members, based on the maintenance and development of the Bank’s co-operative status and on their participation in its share capital. The Association therefore pays particular attention to developments in the rules and regulations that govern co-operative banks, especially those concerning the one-man-one-vote rule and direct participation on the part of the members, both aspects that are considered fundamental for the life of the Co-operative. One of the Association’s tasks according to the articles of association is to express an opinion to the governing bodies with regard to the more important topics affecting the Bank and the Group, as well as to provide ongoing information to its associates with a view to getting them involved as much as possible in the life of the Co-operative. The Association also helps stimulate the relationship between BPM and local economies, businesses and institutions, considering it fundamental to raise its visibility as a territorial bank that has to respond in a mutualistic way to the needs of all its stakeholders. As regards share ownership on the part of associates, after the positive experience with accumulation plans reserved for employees in the past, new types of incentive schemes in accordance with the articles of association will now be taken into consideration.

Ofﬁ cial Bodies of the Association • General Meeting of Members • General Meeting of the Delegates • Management Council • Chairman’s Ofﬁ ce • Supervisory and Guarantee Committee

Activities and initiatives carried out during 2009 Our activities in 2009 were mainly centred on the initiatives that took place at the AGM held on 25 April. The list of candidates presented by our Association for the renewal of the administrative bodies obtained 55% of the votes cast at the AGM, resulting in the election of ten majority Directors and of Massimo Ponzellini as Chairman of the Board.

167 The AGM attracted a huge number of members, especially those that are also employees of the Bank and of Group companies, their families and supporters from all over Italy. It was a day of participation and democratic debate that reaffi rmed the values of our Co-operative versus the institutions, market and stakeholders in general. In July, the Management Council of the Associations organised a referendum that for the fi rst time took place electronically, saving a great deal of time and money. The referendum arose from a request by CONSOB which had raised a doubt about how the articles of association ought to be interpreted. The amendments were approved by 86% of those who voted, fully accepting the recommendation of the Commission. On 19 October we held a conference entitled “Participation in the Business and Employee Shareholders” in the presence, amongst others, of the Secretaries of the three Trade Union Confederations, the Economic and Finance Minister and representatives of Confi ndustria. The meeting was a great success in terms of attendance and media interest, being an important opportunity for a discussion on worker participation. The activity of the Commissions whose task it is to increase share ownership, enlarge our membership base and to make recommendations for amendments to the articles of association continued during the year. As regards communication, our website has been substantially revamped and is due to be improved even more in the near future. For 2010, our commitment will also be to develop initiatives that improve relations between the Associations and to get other members in the territory and Colleagues at Group companies more involved in our activities, the purpose being to make the co-operative model increasingly participatory, transparent and effi cient, in the interest of all of the Bank’s stakeholders.

Contacts Address: Via S. Paolo 16 – 20121 Milan Telephone: 02 7700 4329 Fax: 02 7700 3905 Website: www.amicibpm.it E-mail: [email protected]

168 TOGETHER FOR BANCA POPOLARE DI MILANO Proﬁ le of the Association Following the decision taken on 19 December 2002 by the

Associazione Insieme per la Cooperativa Extraordinary General Meeting of the Members of Banca Popolare Banca Popolare di Milano di Milano to amend the Bank’s articles of association in order to enhance the contribution made to the board of directors by the various components making up the membership, one group of members, representing former employees of the Bank, decided to promote the constitution of an association based on the experience gained by members when they worked for the Bank, together with the experience of customers in their dealings with BPM. One of the Association’s main objectives is therefore to foster synergies between former employees of the Bank and those who are customers, creating the conditions for a development project that is widely shared and likely to generate cohesion among the various types of shareholder.

ID CARD Figures at end 2009

Name of the Association: “Together for Banca Popolare di Milano” (which can be abbreviated to “Assoinsieme”) Year of constitution: 2002 Registered ofﬁ ce: Via G. Mazzini, 11 – Milan Number of members at 31 December 2009: over 3,500 Chairman: Davide Meale

169 Aims of the Association According to its by-laws, the Association has the following aims: • to protect the interests of its associates, ensuring that they are in harmony with those of the entire membership; • to encourage active participation in the life of the Bank on the part of its associates, so as to protect and revalue its “historical” model, its legal and social particularities and its ongoing attachment to the idea of co-operative credit; • to identify candidates with the right professional skills and experience for election to the governing bodies of the Bank and of the BPM Group; • to maintain institutional relations with the Bank’s Board of Directors and with the other Members’ Associations.

These institutional aims have subsequently been supplemented by a mission statement which includes the following key items: a) to take steps to ensure that the history and traditions of the Bank are suitably handled and valorised, also considering that BPM will soon reach the prestigious age of 150 years. b) to offer analyses and suggestions regarding the future of the Bank, so as to gather and focus in the best way possible strategies that favour BPM’s development.

All of the above in the context of a “modus operandi” that considers it fundamental for the Bank’s progress that there is complete independence on the part of the various components of the company and its members, as foreseen in the articles of association and regulations.

Ofﬁ cial Bodies of the Association (art. 13 of the Articles of Association) • General Meeting of Members • Management Council • Executive Committee • Board of Auditors • Board of Arbitrators • Electoral Commission

170 Activities and initiatives carried out during 2009 As regards the topics that were developed during the year, Assoinsieme has always played its role as the association of BPM members open to debate with the other associations, independent and loyal to the principles laid down in its deed of foundation and to its mission. In 2009, the Association was particularly involved in encouraging its members and like-minded persons to take part in the AGM on 25 April 2009, which had on the agenda approval of the fi nancial statements and renewal of the directors and offi cers: in fact, with the help of a numerous group of our members, we organised carpet advertising to foster massive presence at the AGM. Given its role as a minority grouping which wants to ensure rigorous respect for the roles of each of the main players in the life of the co-operative, Assoinsieme felt that it was opportune to take part in the process of deciding who should be on the corporate boards by presenting its own list, which made it possible to ensure a signifi cant presence on the Bank’s governing bodies. During the year, the Association fostered an ample internal debate, partly in view of the renewal of its own governing bodies due to take place in February 2010, as well as to gather proposals and suggestions for the Association’s activities and its representative duty in support of the co-operative. As a result of this debate, various interesting proposals emerged for innovative ways of encouraging greater participation on the part of our members.

Contacts Address: Via G. Mazzini 11 – 20123 Milan Telephone: 02 8050 9134 Fax: 02 7700 6149 Website: www.assoinsieme-bpm.it E-mail: [email protected]

171 NON- BPM STAFF MEMBERS COMMITTEE Profi le of the Association The Non-BPM Staff Members Committee was formed in 1994 on the initiative of a group of the Bank’s members coordinated by Piero Lonardi, a professional accountant from Milan, in order to defend the interests of members of Banca Popolare di Milano and to ensure that they were adequately represented on the Bank’s governing bodies. This association particularly addressed the category of customer- members and investor-members. The Committee has its registered offi ce in Via Pietro Mascagni 15, Milan and operational base in Via Mazzini 11, Milan. The nature, purpose and organisation of the Committee, as stated in its articles of association, can be summarised as follows: – it is an association of a voluntary nature that does not seek profi t; – members and shareholders of Banca Popolare di Milano may join it.

ID CARD Figures at end 2009

Name of the Association: Non-BPM Staff Members Committee (which can be abbreviated to “BPM Members Committee”) Year of constitution: 1994 Registered ofﬁ ce: Via P. Mascagni, 15 – Milan Number of members at 31 December 2009: 3,977 Chairman: Piero Lonardi

172 Aims of the Association • to safeguard and promote the image, role and economic and ﬁ nancial interests of Banca Popolare di Milano; • to represent members of Banca Popolare di Milano, and particularly those members who are not employees, safeguarding their interests and representing their opinions with the bank and all institutions, public and private entities, including through discussion and collaboration with all other BPM Members and its Board of Directors; • to promote initiatives and activities that satisfy the aims described; • to safeguard and defend the bank’s role and co-operative spirit, encouraging the participation of all its members in its corporate life, seeking the utmost transparency in corporate communications and in the conduct of general meetings.

Ofﬁ cial Bodies of the Association • General Meeting of Members • Executive Committee • Chairman • Deputy Chairman • Secretary

Activities and initiatives carried out during 2009 The Committee presented the following list of candidates for the period 2009-2012 at the AGM on 25 April 2009: • Board of Directors: Franco De Benedetti, Roberto Fusilli, Piero Lonardi and Roberto Mazzotta; • Executive Committee: Piero Lonardi; • Board of Statutory Auditors: Salvatore Rino Messina (Acting Auditor), Emilio Cherubini (Alternate Auditor); • Board of Arbitrators: Anna Maria Sanchirico.

173 During 2009, the representatives of the Committee continued its activity to favour opening up the Co-operative to the members, organising initiatives to facilitate registration and access to the Register of Members, participation at the AGM, increasing the number of proxies given and eliminating obstacles to facilitate their use, putting on pressure to make the necessary amendments to the articles of association and making proposals to raise efﬁ ciency.

Contacts Registered ofﬁ ce Address: Via P. Mascagni 15 – 20122 Milan Telephone: 02 782554 Fax: 02 782264

Operational base Address: Via G. Mazzini 11 – 20123 Milan Telephone: 02 7700 3997 Fax: 02 7700 2492 Website: www.comitatosocibpm.it E-mail: [email protected]

174 PERSONNEL

175 1920 – “Maternity”, Donato Frisia. Owned by Banca Popolare di Milano ID CARD

8,661 employees of the Group, of which Staff turnover 1: 240 arrivals and 455 departures ■ 92.3% work at the commercial banks Average age and period of service:

Figures at end 2009 ■ 7.7% work at the afﬁ liates with specialist skills ■ 40.5 years old ■ 16.5 years of service

BREAKDOWN BY GENDER 2

■ Men 55.2% ■ Women 44.8%

DISTRIBUTION BY EDUCATIONAL LEVEL 2

■ University degree 24.5% ■ High school diploma 64.3% ■ Middle school diploma 11.2%

DISTRIBUTION BY LEVEL 2

■ Managers 2.0% ■ Ofﬁ cials 37.6% ■ 3rd level staff 58.4% ■ 2nd level staff 2.0%

1 Excluding transfers within the Group and including those of WeTrade and Anima SGR consolidated on a pro forma basis from 2008. 2 Figures relating to the Parent Bank, the other commercial banks, Bipiemme Private Banking SIM, Banca Akros and Anima SGR. ! Figures and Ratios page 267

176 PERSONNEL

The main aspects of the BPM Group’s personnel management are staff training and development, remuneration policies and wellbeing in the workplace. Even though they share a common strategy, each Group company has particular aspects that derive from their history, mission and links with the territory and which enhance the value of these differences.

One of the features of 2009 was efﬁ ciency raising (with activation of the Solidarity Fund, respecting and protecting the individuals concerned, as well as the sale of certain business units) and, on the other, investment in staff training and development, wellbeing in the workplace and maintenance of the customary policy levels of remuneration.

“View of Cloisters”, Giovanni Migliara. Owned by Fondazione Cassa di Risparmio di Alessandria

177 178 TRAINING AND DEVELOPMENT

TRAINING

Training of the Group’s human resources is an objective that is constantly pursued, being considered a success factor in achieving corporate targets and sustainable growth. The promotion and implementation of a culture of belonging is based on the value of the individual as such and essentially involves reinforcing their professional skills. The BPM Training Centre is the space used above all to promote a sense of belonging to the Group through joint training experiences. As usual, various channels were used depending on the objectives to be achieved and the persons involved: classroom training, on-the-job training, remote training, integrated courses, individual and group coaching.

The Parent Bank has progressively centralised training for all Group banks, except for management training which is organised by the individual companies to comply with their local cultural traditions, paying attention to the value of diversity and the founding values

In 1960 Banca Popolare di Milano America in the Sixties sees the birth of becomes the principal shareholder Pop Art, a movement in contraposition of Banca Agricola Milanese to abstract Expressionism, turning and Banca Briantea. its attention to the objects and speech patterns of the consumer society.

Photo on other page: entrance to the Training Centre at “Bezzi 1” in Via Massaua 4, Milan 179 TRAINING EXPERIENCES OF THE BPM GROUP IN 2009

MODULES TO SUPPORT PROFESSIONAL DEVELOPMENT AIMED AT SALES AND MARKETING STAFF

Interventions in support Compulsory courses required by law or of organisational change regulations (internal or external) Distribution to all employees of operating Courses geared for the otherwise-able procedures and processes as they are planned according to logic, methods and progressively harmonised. language that are suitable for the users.

Sessions devoted to personnel Intercompany courses to strengthen development particular specialisations Individual and collective English courses. External training focusing on very specific topics requested by the employees concerned.

In addition to these courses, which generally involved the entire Group, the following courses were specific to certain companies.

WeBank carried out the following to respond to new training requirements as a result of its transformation into a bank: • an analysis of management skills that needed reinforcing to ensure WeBank’s development in its new competitive scenario, to agree on a skills profile, to foster teamwork and to make communication processes more effective; • a training programme for the entire company to acquire skills that are specific to banking (terminology, processes, regulations).

Banca di Legnano held a management skills course for branch managers and heads of department to reinforce the value chain for the customer.

The quality of the training services provided was verified by top management and by authorised external entities and certified in accordance with the UNI EN ISO 9001:2008 standard.

180 contained in the “Group Regulations”.

In 2009 the Group provided around 48,000 days’ training1, of which 34,222 to BPM personnel and the rest to the employees of other Group companies. In particular:

in 2009, BPM gave 19,416 days’ training in classrooms and 14,806 online. Within the main activity areas, there were 11,536 days of training in professional skills, 4,158 days of management training and 3,722 days of technical and procedural training;

in Cassa di Risparmio di Alessandria, 2009 was characterised by the implementation of a training culture, which almost tripled the average number of days’ training, which rose from 2.5 to 7.

1 Of which 46,855 days provided by the BPM Training Centre.

BREAKDOWN OF BY TOPIC GROUP TRAINING DAYS

■ Remote training 19,610 man-days (41.3%)

■ Professional skills 13,907 man-days (29.3%)

■ Procedures 5,638 man-days (11.9%)

■ Management courses 3,493 man-days (7.4%)

■ Other topics 4,811 man-days (10.1%)

181 DEVELOPMENT

The process of development accompanies each employee throughout their life with the company, from the day they join to the day they leave, using a series of levers that encourage professional growth and role fulﬁ lment.

The guidelines for this process are common for the whole Group, though the individual companies are at different stages of application.

The tools used in 2009 to follow the various phases of each employee’s life cycle in the company concerned:

c.1950 “San Babila”, Umberto Lilloni. Owned by Banca Popolare di Milano

182 Selection and evaluation of potential: this is a key tool any time the company needs to ﬁ ll positions of increasing responsibility to ensure the necessary continuity in all functions and at all levels.

In 2009, BPM established a selection process for filling the position of “Branch Manager”, introducing new methods of analysis and creating a suitable course of preparation for this role in the short and medium term.

Development paths: these aim to develop people’s skills, both in terms of know-how (technical and professional skills) and in terms of ability (personal disposition).

In addition to the customary development paths, in 2009 there was a special initiative for the 150 employees of the Parent Bank’s IT and Operations Department, the idea being to integrate their specialist technical skills with an approach that stresses negotiating and listening skills. To date, this initiative has achieved a qualitative improvement in terms of interpersonal relations, which has been perceived in terms of greater collaboration and willingness to help both colleagues and customers or suppliers.

Performance assessment: the “Contribution Management System” is used to measure and evaluate the individual’s results and conduct during the year vis-à-vis the objectives set for them.

The first half of 2009 was spent designing the system and applying it on an experimental basis to all employees of the Parent Bank. During this phase, all heads of department were trained how to handle the assessment interview with their members of staff. The second half was spent fine-tuning the system (for example, by gathering feedback from the persons involved) to identify any corrective action that was needed before introducing the system fulltime.

183 THE CONTRIBUTION MANAGEMENT SYSTEM IN 2009

What is it? To respond to market challenges, the Group needs each and every employee to take an active, propositive role and to focus their energies on achieving the company’s objectives. The Contribution Management System is an important tool to align individual action and collective results. It is a process that each year involves those in charge of business units and their staff in planning and evaluating what each of them is called upon to do to achieve the Bank’s objectives. The concept of “contribution” includes a series of results (what) and actions (how) required of people in relation to their role within the organisation. The word “contribution” recalls the values of individual responsibility and cooperation, which are an integral part of our identity and which distinguish us from others.

What’s the need? The Contribution Management System has three purposes: 1. Communication to foster continuous direct communication between the heads of business units and their staff. 2. Focus to ensure that the company’s objectives are clear to everyone and that they understand the link between these objectives and their individual contribution. 3. Responsibility to make everyone responsible for their contribution to the results.

Experience to date After the System was introduced, we noted that: • the measurement tool is substantially valid and reliable, so no major adjustments are necessary; • the evaluators have to be given further support to ensure that they apply the tool correctly; • the feedback interview is appreciated because it is a chance for the head of department to meet with each member of staff, share objectives and declare their reciprocal expectations.

184 REMUNERATION SYSTEM AND FRINGE BENEFITS

The remuneration policies, which are consistent with the strategies of each Group company, are based on shared principles designed to enhance employees’ commitment and foster the creation of value through ethical conduct; the ﬁ xed portion of remuneration reﬂ ects the individual’s experience, level of responsibility and skills. In line with the objectives of the 2007-2009 strategic plan, which is now over, the Group followed an approach to personnel assessment that was objective and impartial, rewarding the quality and merit shown by each individual, favouring professional growth and promoting a culture of respect for the rules and the commitments taken. The 2010-2012 Strategic Plan not only considers training as the main factor in boosting development programmes, but also introduces a bonus system based on the achievement of objectives.

The compensation package not only contains the ﬁ xed and variable portions of remuneration, but also takes account of the various fringe beneﬁ ts for employees and their families, which can differ from company to company.

In the mid-Seventies, BPM buys the The Seventies saw the development Torre Galfa, Milan’s third highest of Conceptual Art, which considers skyscraper which becomes the Bank’s artistic production as a theoretic project, centre of operations. formulated in the mind and detached from effective creation.

185 186 The pension and healthcare beneﬁ ts are structured in such a way as to provide guarantees for the health of employees and their families during their working career and during retirement. There is also the chance to allocate a certain percentage of their salary to a pension fund. Additional beneﬁ ts are available for leisure activities (company social clubs) and to support employees and their families at all stages of life (e.g. access to banking products at special conditions, the nursery and summer camps for their children).

BALANCING WORK AND PRIVATE LIFE • Nursery • Summer camps for children • Bursaries

“THE GARDEN OF BEZ”, THE BANK’S NURSERY This is the Group’s pride and joy in the provision of support services for the children of working parents. It offers special rates to BPM Group employees (around 50% of the fees paid by others). This structure has been in existence for only two years, but already customer satisfaction questionnaires have been distributed to the children’s parents and the feedback shows that the nursery achieves levels of excellence both in the beauty of its surroundings and rationality of the facilities and in its teaching methods and educational content. The 2009 results conﬁ rm that this structure is much appreciated. In particular, the assessment given to the teacher is very positive for 100% of the respondents, while the level of communication is considered very positive for 97.5% of them. ✓ A nursery extension was approved in 2009 in order to accept more children, thereby making it easier for more parents to organise their work.

Photo on the other page: “Il Giardino di Bez”, BPM’s nursery. 187 HEALTH • Supplementary Healthcare Fund (Mutual Healthcare Fund for BPM and Corporate Supplementary Healthcare Association for Banca di Legnano) • Affi liations with major national hospitals and clinics • Supplementary benefi ts for the care and assistance of family members • Long Term Care Policy: insurance cover paid for by the company to cope with unforeseen, disabling events that result in the person no longer being self-suffi cient.

BPM MUTUAL HEALTHCARE FUND (MHF) This is a voluntary, non-proﬁ t association comprising Banca Popolare di Milano’s employees and pensioners. Its purpose is to provide members and their families with healthcare and economic support that supplements that available from the National Health Service. At 31 December 2009 the MHF had assets of 22.5 million euro (up on the 21.2 million euro at the end of 2008) with 10,283 members (258 more than the previous year), as well as 7,911 family members who receive beneﬁ ts (also 249 more than in 2008).

The updated health beneﬁ ts approved by the managers of the MHF came into effect in 2009 and the by-laws and regulations were adjusted to provide colleagues who joined the “Solidarity Fund” the same rights as the members still at work.

188 PENSION • Corporate supplementary pension fund

BPM PENSION FUND This is a supplementary pension fund that exists since 1989. It is open to all employees to allow them to build up a pension in addition to the one paid by the State. The Fund receives contributions from the Group based on speciﬁ c agreements stipulated with the Trade Unions: the fund’s resources are allocated to three lines of investment that differ based on the level of risk. Membership is individual and voluntary, based on the principle of bilateral contributions paid monthly by members of the fund and by the Bank. In accordance with the latest reform of the pension system, the individual’s severance indemnity provision is also allocated to the fund.

LEISURE • Recreation and Social Clubs

ARES BIPIEMME This is a non-profi t mutual co-operative set up by the employees and pensioners of the Group to promote services and activities of a recreational, cultural and social nature. The Bank supports these activities with a fi nancial contribution, suitable premises and specifi c staff and delegates to ARES the organisation of various initiatives, such as the summer camps and special events for the Christmas and Easter holidays.

In 1979 BPM continues its expansion The second half of the Seventies sees strategy by absorbing Banca Popolare the afﬁ rmation of the Transavantgarde Cooperativa Vogherese. movement, which likes to represent ﬁ gurative images using any language and style indifferently.

189 QUALITY OF LIFE • Sustainable transport • Company canteen

SUSTAINABLE TRANSPORT To help overcome potential problems caused by roadworks during the development of the trade fair hub for Expo 2015, Banca Akros has said that it is willing to contribute towards the cost of annual season tickets for those employees who come to work on public transport;

COMPANY CANTEEN There are two company canteens - one at the head ofﬁ ce in Piazza Meda, the other at the Services Centre in Via Bezzi - which provide meals every day to Group employees. Particular attention is paid to the quality of the products used and a wide choice of dishes is offered, also in response to the speciﬁ c needs of those with food allergies or similar problems.

1997 “The Ulysses Horse/Man”, Imer Guala. Owned by Banca Popolare di Milano

190 WELLBEING IN THE WORKPLACE

HEALTH AND SAFETY

The attention paid to questions of welfare, health and safety arises from an awareness that to have a relatively worry-free workforce gives the Group an important competitive advantage.

PRINCIPAL MEASURES TAKEN BY THE GROUP

Introduction of a biometric recognition system Definition at a provincial level of collaboration based on fingerprints as an anti-bank robbery agreements with police headquarters to establish measure: by the end of 2009, 201 branches effective actions to be taken locally. of BPM and Banca di Legnano were equipped with this system.

Installation of cash in/cash out devices at ATMs The business continuity plan applied in 2009 to simplify the work of the tellers, while reducing was supplemented to cope with emergencies the risks involved in handling banknotes. such as pandemics.

Preparation of an occupational distress evaluation document which showed that the activities carried on in BPM are unlikely to cause a significant level of stress at work. It was felt opportune to plan activities in support of staff on night shift (with at least 20 hours of such work per year) and for those who have experienced various bank robberies, as these are considered populations at risk.

Continuation of collaboration with the Istituto Psychological support in the areas relating to Don Gnocchi to study the ergonomics of handicaps, work distress and welcoming new hires workstations used by people with serious for the branch network, as well as in the post bank physical handicaps. The measures taken in robbery area on the request of the individuals 2009 concerned above all a person with a concerned. Cassa di Risparmio di Alessandria sight impairment. was particularly involved in this last area.

191 Risk assessment is the starting point for the decisions to be taken with regard to safety at work and environmental risks for the community: this is the main tool for identifying the prevention and protection measures that are needed and for planning their implementation. The entire Group has always ensured that all the necessary precautions are taken to allow employees to work in a safe and healthy environment, the end purpose being to avoid accidents and illnesses of any sort. Numerous measures have been introduced in this sense, some standard, some peculiar to certain companies, as shown in the table on the previous page.

INDUSTRIAL RELATIONS

There was intense activity during 2009 in the ﬁ eld of industrial relations, largely as a result of important plans to restructure the entire Group.

Given the complexity of the economic scenario, the Bank’s express

! Figures and Ratios intention to reduce costs and rationalise current economic and physical pages 270-271 resources was sustained by activating the Solidarity Fund. The related agreement, which is totally innovative for BPM and the result of complex negotiations with the Trade Unions and other Social Partners, will lead to a reduction in personnel over the period 2009-2011 of around 500 persons employed by the commercial banks involved in the scheme 1.

1 Banca Popolare di Milano, Banca di Legnano and Cassa di Risparmio di Alessandria.

192 Activation of the Solidarity Fund has therefore provided an opportunity to commence a process of personnel renewal, also by using the professional apprenticeship contract for the new hires, and to initiate a series of internal and Group reorganisations with related transfers of staff. During the course of 2009, a total of 34 agreements were signed with the Trade Unions, some of which were a direct consequence of activating the Solidarity Fund (e.g. for those who have joined the Solidarity Fund to still have access to the Healthcare Fund). Other agreements had the purpose of regulating the knock-on effects on the working conditions of those involved, in accordance with the terms of the National Labour Contract. At a Group level, this took place when a business division was transferred from BPM to We@ service with a view to setting up WeBank (an operation that involved the personnel of two BPM structures, the Call Centre and the 599 Webank virtual branch) and when Anima SGR was merged with Bipiemme Gestioni SGR to form Anima SGR SpA. Other negotiations took place within the individual Group companies at the time of other reorganisations (e.g. integration of the branches bought from Unicredit, combining branches and renewing the tele- working contract).

TOTAL 1 Days worked 1,780,436 Overtime (hours) 112,842 Hours accrued in the time bank 60,947 Days of sick leave 74,730

1 Figures relating to the Parent Bank, Banca di Legnano, Cassa di Risparmio di Alessandria, Banca Popolare di Mantova, Bipiemme Private Banking SIM, Banca Akros and Anima SGR.

193 INVOLVEMENT AND COMMUNICATION

The involvement of those who work for the Bank depends a great deal on effective methods of communicating information, values, ﬁ gures, decisions, suggestions and changes in line with BPM’s corporate culture and strategy, so as to improve hierarchical and interfunctional information ﬂ ows, to motivate human resources and make them feel engaged, to spread a sense of responsibility, accelerate decision-making and improve time management.

Each Group company implements speciﬁ c measures to improve involvement and communication.

Prize giving for the “Ideas in Play” competition.

194 Banca Popolare di Milano • the AGM, which has always been the best occasion for getting involved in the life of the Bank; • prize-giving for the ”Ideas in Play” competition, with a view to stimulating a spirit of initiative in proposing innovative projects. 432 proposals have been received and 13 colleagues have been awarded prizes; • loyalty awards to colleagues with 25 and 30 years of service in the Bank; • annual day of salute to newly retired staff and of welcome to new hires. These events took place at the ofﬁ ces in Milan, Bologna, Rome and Foggia.

Banca di Legnano • Annual reunion with the Bank’s pensioners, during the course of which all colleagues with 25-35 years of service are rewarded; • day of welcome for new hires; • analysis of the climate among employees (those in force, those on maternity leave and those on extended sick leave). Research has shown that a strong sense of belonging and sharing the company’s values and strategies are distinctive factors.

Cassa di Risparmio di Alessandria • convention to present the new company logo at the Teatro Comunale of Alessandria; • presentation of the rationale and content of the Corporate Identity; • distribution of issue zero of the company newsletter which includes

“New hires” day

195 articles by the Chairman and the General Manager, a poster with photographs of all of the employees of Cassa di Risparmio di Alessandria and a story dedicated to the Smile, the key image in the new corporate identity.

Banca Popolare di Mantova • fortnightly meetings between the Lending Department, the Commercial Department and the Branch Managers to discuss matters of mutual interest; • organisation of two conventions involving all of the employees: one in February on the arrival of the new General Manager and one in October to explain the Bank’s results; • Christmas dinner, preceded by a meeting during which the General Manager discussed a draft of the 2010-2012 Strategic Plan.

WeBank • two company meetings to update all employees on the project to transform the company into a bank and to celebrate completion of the process (in the presence also of consultants and suppliers).

Banca Akros • transmission of a request for a quantitative and qualitative evaluation to all colleagues who use speciﬁ c IT products/services; • quarterly presentation to all employees of the company’s results; • presentation to top management of the Group’s 2010-2012 Strategic Plan; • Christmas dinner with all employees and extraction of prizes; • loyalty awards to colleagues with 10 and 20 years of service in the Bank; • interbank 7-a-side football tournament in which Banca Akros takes part with its own team.

196 MAKING DIFFERENCES COUNT

Diversity Management is a method of acknowledging the differences between people and making use of them. Adopting this approach means: • recognising the differences that exist without ignoring or refusing them, but managing them actively and using them as leverage to increase the competitiveness of the Bank and raising its chances of success; • to create an “inclusive” environment, where differences are not a source of discrimination, but an asset that is appreciated.

The policies adopted by the Group in the ﬁ eld of Diversity Management take various forms: hiring disabled persons, adopting ﬂ exible types of work, bursaries for high potential staff, training courses, etc.

An internal survey was carried out in 2009 to assess the Diversity Management practices undertaken by the Group in terms of ﬂ exibility, communication climate, integration policies and orientation in favour of diversity.

The POESIA project (which stands for “Pari Opportunità E Sostegno In Azienda” or equal opportunities and support at work) is BPM’s initiative to promote wellbeing in the workplace for all Group employees. Flexibility, part-time contracts, childcare and healthcare services are just some of the initiatives carried out in the field of equal opportunities. Support at work includes the psychological assistance provided for members of staff who are otherwise-able or suffering from work distress.

197 The results show that the Group is perceived as caring about diversity, above all in relation to the aspects of ﬂ exibility (time bank and child support); the need also emerged to invest in ways of listening to employees, in building an open climate of trust at various levels (head/staff/colleagues), in training and awareness programmes to increase an understanding and appreciation of diversities. In particular, BPM took the following initiatives during the course of 2009:

CHARTER OF EQUAL OPPORTUNITIES In October 2009, we signed the Charter of Equal Opportunities and Equality at Work promoted by the Ministry of Labour, Health and Social Policies and by the Ministry of Equal Opportunities. This is a short document that - with just a few planning commitments of great strategic and ethical value - makes it possible to promote the management of equal opportunities in BPM.

Divisione Risorse e Politiche Contrattuali CODE OF GOOD CONDUCT FOR THE PREVENTION OF DISCRIMINATION This is the Code adopted by BPM to prevent illicit Codice di buona condotta per la prevenzione delle discriminazioni behaviour: it illustrates the rules that all employees will have to follow, clariﬁ es responsibilities and the methods of reporting all forms of abuse or discrimination based on gender, age, culture, religion or ability.

Sosteniamo i diritti umani fondamentali, l’uguaglianza e il valore della “diversità”. Miglioriamo insieme il nostro ambiente di lavoro.

198 In this connection, we have activated a freephone number that records messages regarding cases of discrimination. These messages are then listened to by the Personnel Manager, a psychologist and the Head of the Legal Department. A speciﬁ c e-mail address is available for deaf people.

MULTICULTURALISM On 27 October a convention entitled “Diversity Management: a value for the company” took place in BPM, promoted by the Sodalitas Foundation in collaboration with UNAR (Ufﬁ cio Nazionale Antidiscriminazioni Razziali - National Anti-Racial Discrimination Ofﬁ ce). During the meeting, there was a discussion of how to handle multiculturalism involving employees, customers and suppliers.

1818 “View of Church Apse and People”, Giovanni Migliara. Owned by Fondazione Cassa di Risparmio di Alessandria

199 GENDERATIVITY The Genderativity project is an innovative process which to date, after two years, has involved over 50 professionals of 22 companies, including the BPM Group, and non-proﬁ t organisations. The participants have discussed the question of how to connect and integrate the various dimensions of the personal and professional life experience. The results achieved by the project up to now were presented on 4 November 2009 and collected in a book entitled “Genderativity: a Process between Acceptance and Profession”.

PSYCHOLOGICAL SUPPORT For its management of otherwise-able resources, BPM received a special mention in the “Diversity” category at the 7th edition of the Sodalitas Social Award in the section devoted to programmes geared for developing human capital. The tools introduced concern a personalised management system and an activity to prevent work distress.

Sodalitas Prize

200 SUPPLIERS

201

1972 – “Abstract Blue”, Dideck Ladislav. Owned by Banca Popolare di Milano ID CARD

Purchases: over 360 million euro, of which As regards the 1,390 suppliers of the 47.6% for services. Parent Bank: Number of suppliers: ■ 356 are certiﬁ ed (25.6%)

Figures at the end 2009 2,568, of which 1,965 resident in the ■ 703 are customers of BPM (50.6%) North-West of Italy, the area where the ■ 482 have been supplying us for Group has its strongest roots (76.5%). over 10 years (34.7%) ■ 250 are new (17.9%)

BREAKDOWN BY TURNOVER

■ Services 47.6% ■ Technologies 35.7% ■ Property 16.7%

BREAKDOWN BY NUMBER OF SUPPLIERS

■ Servizi 71,2% ■ Tecnologie12,5% ■ Immobili 16,3%

ANALYSIS BY GEOGRAPHICAL AREA (% OF TURNOVER)

■ North-West Italy 76.9% ■ Central Italy 10.4% ■ North-East Italy 6.9% ■ Abroad 3.8% ■ Southern Italy 1.4% ■ Italian islands 0.6%

1 ID card ﬁ gures relate to the Parent Bank, the other commercial banks, Bipiemme Private Banking SIM and Banca Akros.

! Figures and Ratios pages 273-274

202 SUPPLIERS

To achieve better results in terms of service quality and to handle relations with suppliers better, in 2003 the BPM Group introduced a Central Buying Ofﬁ ce which over the years has developed new professional skills using more and more sophisticated procedures.

Initially only at the service of the Parent Bank, the Central Buying Ofﬁ ce progressively extended its radius of action and by 2009 included all of the commercial banks.

In the relationship with their suppliers, all Group companies, including those operating autonomously from the Central Buying Ofﬁ ce, aim to build up clear and lasting partnership agreements. The fact that these relationships are based on reciprocal collaboration means that disputes are extremely rare.

In 1982 BPM participates along A series of exhibitions inaugurate with other banks in salvaging Banco the Transavantgarde movement: the Ambrosiano and in 1985 acquires “Biennale di Venezia” in 1980 and control of Banca Agricola Milanese. the “Transavantgarde Italy/America” exhibition held in Modena in 1982.

203 MISSION AND GUIDELINES OF THE CENTRAL BUYING SERVICE

TRANSPARENCY AND EQUITY IN THE SELECTION PROCESS When dealing with suppliers, the Central Buying Ofﬁ ce believes that respect for the environment and for current rules and regulations are values of primary importance to create a constructive partnership that is mutually advantageous for both parties concerned.

SUPPLY CONTRACTS All supplies are adequately formalised and documented: for this, extremely detailed contracts are used with explicit references to laws on the protection of health and safety in the workplace (as per Decree 81/2008) and a clause allowing the contract to be cancelled in the event of discriminatory policies, violations of workers’ rights or non-compliance with environmental legislation. On the other hand, all suppliers are paid according to the contractual rules, so disputes are minimal.

204 RELATIONS WITH SUPPLIERS All suppliers that comply with the requisites established by the Central Buying Ofﬁ ce are given the chance to compete for the provision of products and services, also through the use of on-line tenders that considerably widen the possibility of access to suppliers and guarantee transparency, fairness and speed in activating negotiations.

1960 “Forte Beach”, Ardengo Sofﬁ ci. Owned by Banca di Legnano

205 RELATIONSHIP WITH SUPPLIERS

The objective of the Central Buying Ofﬁ ce is to obtain the best market conditions for a certain quality when buying goods and services, while respecting all company rules and regulations, optimising the time it takes to complete the procurement process.

During the course of 2009, the activity of opening up to potential new suppliers continued assiduously, thereby creating the conditions for the qualifying process to be clear and straightforward (through access to the institutional website). We also introduced a system of traceability and management of the service procurement process that is able to report and highlight any weaknesses in the information on suppliers linked to questions of health and safety in the workplace and compliance with environmental regulations, as well as to deal with the underlying contracts on a timely basis. SUPPLIER CONTROLS AT BANCA AKROS From this point of view, the Supplier List was Periodically, Banca Akros carries out internal further reﬁ ned during 2009, controls to evaluate the quality of the products purchased and the level of satisfaction of the extending it to the Group’s services offered. These controls make it possible commercial banks. These to assess very accurately whether a product is initiatives were managed put to full use and whether there are alternative products that could be used in its place. in compliance with the principles laid down in the SIRF Project (which stands for “Sostenibilità e Integrità nei Rapporti con i Fornitori” or Sustainability and Integrity in Relations with Suppliers) which Banca Popolare di Milano joined some years ago.

206 COMMUNITY

207 1890 – Detail of “Carneval Saturday at Cannobio”, Vespasiano Bignami. Owned by Banca Popolare di Milano ID CARD

Interventions: over 970 initiatives ﬁ nanced for over 6.5 million euro, of which

■ 23.4% for donations ■ 66.6% for investments in the community

Figures at the end of 2009 ■ 10% for commercial initiatives with an impact on the community

Conferences hosted in own premises: over 70

TYPES OF ACTIVITIES WITHIN THE INTERVENTIONS FINANCED

■ Culture 52.7% ■ Solidarity 13.3% ■ Healthcare 9.8% ■ Education 9.0% ■ Sport 7.1% ■ Scientiﬁ c research 2.2% ■ Other 5.8%

GEOGRAPHICAL LOCATION OF THE EVENTS FUNDED

■ Milan 72.3% ■ Lombardy (excluding Milan) 15.0%

■ Other regions 12.7%

1 Figures relate to the Parent Bank, the other commercial banks, Banca Akros and Anima SGR.

! Figures and Ratios page 275

208 COMMUNITY

The BPM Group has always had strong roots in its territory, with which it carries on a continuous and consolidated relationship of collaboration. A fundamental goal for us is to maintain and reﬁ ne our ability to listen to and discuss with new interlocutors with whom we can share values, actions and objectives. For this reason, we try to reconcile, where possible, our commercial needs and the achievement of objectives of a social nature or geared to enhance Italy’s artistic and cultural heritage. We believe that economic progress cannot be separated from civil progress and that social needs can never be avoided: this is why we also try to give space to all of the proposals made by our members. Any request for a contribution follows a direct and immediate path that has been consolidated over time1. The articles of association of Banca Popolare di Milano and those of Cassa di Risparmio di Alessandria also provide that an amount not exceeding 2% and 3%, respectively, of the previous year’s net proﬁ t should be allocated to charitable initiatives of a social or cultural nature.

1 As far as BPM is concerned, each request has to be presented in writing to any branch in the network, which sends it on to its area head offi ce. This offi ce can hold on to it and satisfy the request directly, or send it on to the central offi ce department in question, if it involves a commitment of a certain size in organisational and fi nancial terms.

Akros Finanziaria is founded Alongside the Transavantgarde in 1987 and ten years later becomes movement, there develops Banca Akros. Hyperrealism which is based on the reproduction of a photograph, enlarged as much as possible.

209 The following pages give a brief explanation of the interventions made in 2009, classiﬁ ed according to the following three categories 1: • donations: forms of occasional support given free of charge in response to the community’s needs; • investing in the community: long-term strategic partnerships in favour of social causes chosen by the company; • commercial initiatives with an impact on the community: activities carried on in partnership with non-proﬁ t organisations with a view to promoting the company’s brand identity.

The following is a description of the interventions made by each Group company to focus on the links with their particular territory.

DISTRIBUTION BY TYPE OF ACTIVITY 2 (in thousands of Euro) Total Donations Investing Commercial in the initiatives with community an impact on the community Culture 3,426 687 2,469 270 Scientiﬁ c research 144 54 90 0 Solidarity 866 323 511 31 Healthcare 640 92 548 0 Education 584 109 461 15 Sport 464 152 57 255 Other 378 102 194 82 Total 6,501 1,519 4,330 653

1 The classiﬁ cation follows the reporting model proposed by the London Benchmarking Group (LBG). 2 Figures relate to the Parent Bank, the commercial banks, Bipiemme Private Banking SIM, Banca Akros and Anima SGR.

210 DONATIONS AND GIFTS

Banca Popolare di Milano, which with its values and strengths has a presence in the most important cultural, scientiﬁ c and humanitarian institutions in its territory, in 2009 again chose to make a contribution to certain entities and initiatives.

CULTURE • Fondazione Artistica Poldi Pezzoli; • Associazione La Cappella Musicale; • Teatro Franco Parenti.

RESEARCH AND HEALTHCARE • AIRC – Associazione Italiana Ricerca sul Cancro – Extraordinary concert at the Teatro alla Scala; • AISM – Association Italiana Sclerosi Multipla – Support for home assistance for persons suffering from multiple sclerosis; • Fondazione Umberto Veronesi – Implementation of the diagnosis project for the prevention of lung cancer by means of a spiral CT scan.

BPM’s expansion policy proceeds The Nineties saw the development of over the years with acquisitions and Digital Art: the new technologies become mergers: Banca Popolare di Bologna a artistic language, giving birth to works e Ferrara (1988) and Banca Popolare that aim to achieve an interactive experience di Apricena (1989). that involves the spectator more and more.

211 SOLIDARITY

• Fondazione Movimento Bambino for the rights of children and adolescence; • Fondazione Robert F. Kennedy.

EDUCATION AND SPORT

• Istituto Giuseppe Toniolo – Awarding of ten bursaries for the 2009-2010 academic year; • Creation of a 7-a-side football pitch in Milan together with the Fondazione Magnoni, which looks after youngsters in difﬁ culty.

INDIVIDUAL INITIATIVES

• History lessons held in Santa Maria delle Grazie in Milan, organised by Laterza – Agorà; • Exhibition entitled “100 years of creativity in Piedmont” held at Palazzo del Monferrato in Alessandria.

SOLIDARITY AT CHRISTMAS The ARES BPM Co-operative again raised more than 150 thousand euro through its “Solidarity at Christmas” initiative, thanks to the contributions made by its members – employees, pensioners and their families – in addition to that made by BPM. The sum collected has been destined to needy families indicated by colleagues and to certain projects suggested by the associations.

212 Of particular importance was the charity evening organised by BPM on behalf of the Fondazione Robert F. Kennedy which deals with humanitarian initiatives and supporting civil liberties. On that occasion, the Central Hall of the Bank played host to a charity dinner for 400 guests that included some of the most illustrious names in ﬁ nance and entertainment. Bill Clinton, the former President of the United States, was present to act as a testimonial for the Foundation’s commitment.

The “Fondazione Kennedy” Charity Evening

213 214 MAKING ROOM FOR SOLIDARITY The “Let’s make room for solidarity” initiative continued in 2009. This is a project by Faresolidale thanks to the collaboration of ARES BPM and Ge.Se.So.1, which offers visibility to non-proﬁ t customers by giving them space in the company canteens so that they can promote their activities and get themselves known among the Bank’s employees.

Banca Popolare di Milano often hosts conferences and public meetings in the Sala delle Colonne inside Palazzo Corio Casati and at the Auditorium inaugurated a few years ago in the Services Centre in Viale Bezzi. 74 conferences were held in 2009, as follows: • Economy and Taxation: 31 • Solidarity and Healthcare: 26 • Culture: 17

1 Respectively, the co-operative that organises recreational activities for BPM employees (see page 189 for details) and the Group company that runs our canteens.

“A castle on ﬁ re on the seashore”, Francesco Guardi. Owned by Banca di Legnano

Photo on other page: The “Sala delle Colonne” at Banca Popolare di Milano’s head ofﬁ ce 215 Cassa di Risparmio di Alessandria has conﬁ rmed its status as a territorial bank that gives donations to various small and medium size entities, including:

• Associazione Diabetici Alessandria – Jada; • ADA – Associazione Diritti per gli Anziani; • Opera Pia Asili Infantili Alessandria; • CRI – Croce Rossa Italiana (Italian Red Cross), Alessandria Committee; • Association Sportiva Dilettantistica “Le Ali” (for the National Wheelchair Tennis Championship); • Associazione Cresci Onlus – Savona; • Azienda Ospedaliera SS. Antonio e Biagio e Cesare Arrigo – Alessandria; • Omniamedia Cultural Association – Savona; • Associazione Aiutiamoci a Vivere Onlus.

In 2009 Cassa di Risparmio di Alessandria also organised conferences with local trade associations and professional bodies (on product innovation, EC agricultural policies, photovoltaic solar panels and renewable energy sources, sector studies for tax purposes and the impact of the crisis on commercial enterprises, etc.); it also organised a meeting between the trade associations and the provincial delegation of ABI on the topic: “Facilitating access to credit for productive sectors of the economy and overcoming the crisis”. In collaboration with Fondazione Cassa di Risparmio di Alessandria, CRA published a book entitled “From 1849 to 1859”, the second volume in the trilogy “Alessandria from the Risorgimento to the Uniﬁ cation of Italy”, which continues to do research into the history of the territory where the bank operates.

216 Banca Popolare di Mantova also chose to support a number of initiatives in various areas.

CULTURE AND ENVIRONMENT • Virgiliana di Bioetica; • Accademia Italiana della Cucina; • Leo Club Mantova Host; • Province of Mantua (contribution for the celebration of the 150th Anniversary of the Battle of Solferino); • S. Margherita Giovani Castelnovesi (Asola); • FAI – Fondo per l’Ambiente Italiano.

SOLIDARITY

• Publication of the book “The Story of Jessica”, by PubliPaolini 1; • Agape Onlus, c/o CASA (Centro di Ascolto Servizi e Accoglienza), San Simone.

EDUCATION

• Association Scuola Senza Frontiere; • Istituto Comprensivo 1 of Suzzara.

1 A biography that tells the story of a father in the Province of Mantua who experiences the various stages of the illness that kills both his wife and daughter. A number of free copies have been distributed to employees of the Bank with distribution helped by word of mouth.

Three branches of Cassa di Risparmio 1991 sees the birth of Massurrealism, di Alessandria are opened in 1990: which combines mass media and two in the province of Asti and one in surrealism, by introducing technology Lombardy. to pictorial imagery.

217 Bipiemme Private Banking SIM supported the realisation of two publications in 2009: “Saronno, Saronnatt, History, Churches and Monuments. The Mansions, Museums and Traditions of Saronno” and “Saronno without a care. Jokes, rhymes, prayers and songs in our local dialect”, a choice in line with the territorial vocation expressed by the Parent Bank (the company has a private banking ofﬁ ce in Saronno).

Banca Akros has helped to advance the philosophy of attention to social and environmental questions by making donation to various organisations:

• AIAS – Associazione Italiana Assistenza Spastici; • AIRC – Associazione Italiana Ricerca sul Cancro; • AISTMAR – Associazione Italiana per lo Studio e la Tutela della Maternità ad Alto Rischio; • Amnesty International; • Archè; • Associazione Volontari Aiuti per la Sclerosi Multipla; • Club Sostenitori Museo Bagatti Valsecchi; • Comunità San Patrignano; • Fondazione Francesca Rava; • Fondazione San Benedetto; • Medici Senza Frontiere (Natale Senza Frontiere); • Associazione Genitori Italiani contro il Tumore dei Bambini; • FAI – Fondo per l’Ambiente Italiano; • WWF.

218 Following the devastating earthquake that rocked Abruzzo, the Group moved rapidly to show its solidarity with the victims:

Banca Popolare di Milano promoted fund-raising among its employees. The amount collected, plus a contribution from the Bank and from the Friends of Banca Popolare di Milano Association, will be assigned to a speciﬁ c project that will be chosen in 2010;

In addition to the fund-raising among its employees, Cassa di Risparmio di Alessandria also made donations to the local Civil Protection unit and other associations operating on the same front;

Banca Popolare di Mantova, on the other hand, chose to support the Ape Tau Nursery Promotion Committee for the construction of a nursery in the earthquake zone.

c. 1960 “Flowers”, Ennio Morlotti. Owned by Banca di Legnano

219 220 INVESTING IN THE COMMUNITY

In 2009 BPM added new projects to the one already underway, consolidating its reputation as a bank with strong territorial roots, one that pays attention to the society in which it operates.

CULTURE In the ﬁ eld of culture, which gets allocated the highest contributions, the initiatives supported by Banca Popolare di Milano range from research, conservation and restoration projects to long-standing collaboration arrangements with important local institutions, such as ISEC, the Contemporary History Institute.

In addition to help provided for the reorganisation of the archives of the Istituto Luigi Sturzo, the Bank also ﬁ nanced the restoration of the church of San Maurizio al Monastero Maggiore and an old mill at the Santa Maria di Chiaravalle Monastery, the activities of the Friends of Brera Association, of the Milanese Museums and of the Friends of MiArt Association to set up a fund to buy contemporary works of art. Again in 2009 BPM was a sponsor of the Scala Theatre Museum.

Together with the Mirasole Abbey Association, it is completing a educational initiative implemented by the Centro di Relazione Educativa Adulto–Adolescente (CREADA).

In the musical ﬁ eld, BPM is a founding partner of Teatro alla Scala and supports the Fondazione Orchestra Sinfonica e Coro Sinfonico di Milano Giuseppe Verdi and the Fondazione I Pomeriggi Musicali which organises “La Milanesiana”.

Photo on other page: entrance to the Scala Theatre Museum in Milan. 221 With the Municipality of Milan it also sponsors “Musica e Poesia a San Maurizio” and with the Municipality of Bollate the “Festival di Villa Arconati.” and “Musica in rete”.

RESEARCH

• Friends of Centro Dino Ferrari Association (Ospedale Maggiore Policlinico) – Funding research into genetic factors that can lead to ASL (amyotrophic lateral sclerosis); • Mario Negri Pharmacological Research Institute of Milan – Research into the involvement of the cerebrovascular unit in ischemic damage.

HEALTHCARE

• Dialysis and Kidney Disease Association (Sacco Hospital) – Purchase of new ultrasound probes; • Fondazione Don Gnocchi – Creation of a sector for patients in a vegetative state; • Istituto Nazionale per lo Studio e la Cura dei Tumori – Four-year funding of bursaries for the study of paediatric oncology.

1936 “Monumental Composition with Equestrian Statue”, Mario Sironi. Owned by Banca Popolare di Milano

222 SOLIDARITY

• Associazione Serenità (families in difﬁ culty); • ATTIVEcomeprima (support for women suffering from breast cancer); • AVSI – Associazione Volontari per il Servizio Internazionale (international service volunteers); • Fondazione Banco Alimentare (food bank); • Fondazione Casa della Carità Angelo Abriani; • Fonos (social secretariat for families who belong to the IRCCS); • Opera San Francesco; • Vidas (assistance for the terminally ill); • Fondazione per la Sussidiarietà; • Fondazione San Giacomo; • Fondazione Emergency.

EDUCATION

• Fondazione San Benedetto – Creation of a study room and a library; • Collegio Universitario di Milano; • “Bocconi Graduate Merit Awards” for students admitted to the ﬁ rst year of the Bocconi Master of Science Program.

On 23 December 1991 Cassa di 1995 saw the birth of Hyperspatialism, Risparmio di Alessandria set itself up an awareness of a wider vision of space as a joint-stock company, splitting off thanks to scientiﬁ c and electronic from Fondazione Cassa di Risparmio. progress.

223 AGIRE In 2009 BPM consolidated its partnership with AGIRE (“Agenzia Italiana di Risposta alle Emergenze Onlus”), a non-proﬁ t association that brings together some of the most important and authoritative NGOs present in Italy to respond rapidly, effectively and transparently to severe humanitarian emergencies around the world, thanks to a network of partners who help inform public opinion and increase general awareness, as well as creating multiple fund-raising channels whenever there is a serious emergency.

In 2009 AGIRE launched two appeals, in which BPM participated: “AGIRE for Africa”, a special campaign dedicated to the humanitarian crises caused by the continuous wars in Somalia, Sudan and the Democratic Republic of the Congo, and “South East Asia Emergency”, to sustain the populations hit by a series of natural disasters in October. The partnership with AGIRE in continuing in 2010 as well: in fact, BPM took part in the appeal to support the population of Haiti when it was hit by an earthquake.

UNICEF For a number of years, during the Christmas period, Banca Popolare di Milano promotes the sale of UNICEF’s products to customers of our branches. This year’s results were good once again: we collected around 30,000 euro for projects in favour of children.

224 MILAN’S NORTH PARK As part of the project to compensate for greenhouse gas emissions which led to the creation of the “BPM Wood” in Milan’s North Park (see the chapter on Environment for details), our collaboration with the park authorities was strengthened by working together on various other initiatives: • “Informica”, the park’s quarterly newsletter, is on display at the BPM branches nearest to the park; • the sponsorship of information boards in the park;

• participation at the Biodiversity Inauguration of the former Breda air-raid shelters Festival; • sponsorship of the inauguration of the former Breda air-raid shelters which, thanks to the restoration work carried out by the park authorities, have been returned to the public as a memorial to the community’s wartime experiences. Many other activities are currently underway, creating a collaboration that is effective and increasingly constructive.

Ceremony of inauguration of the former Breda air-raid shelters in Milan’s North Park.

225 “THE GARDEN OF BEZ” company nursery Now in its third year of activity, in 2009 ”The Garden of Bez”, the Bank’s nursery at the Services Centre in Via Massaua continued to accept children also from families who do not form part of the BPM world (15 kids from the local area).

HISTORICAL ARCHIVES BPM’s Historical Archives have been declared by the Cultural Heritage Ministry “of considerable historical interest and great importance for the history of banking and the economy in Lombardy”. The Archives are open to the public, which means that all of the documents can be consulted and put to good use. The users mainly consist of scholars and thesis-writers, but requests are often received from journalists, high schools, other archives, agencies, associations, radio stations, customers, members, current and retired employees and other citizens. The Archives also carry out research for users inside and outside the Bank.

Banca Popolare di Milano’s Historical Archives

226 RELATIONSHIP WITH UNIVERSITIES AND SCHOOLS In order to bring schools closer to the world of work, BPM collaborates on an ongoing basis with the main universities in the Milan area, promoting training and orientation apprenticeships, mainly for students in economics and ﬁ nance faculties. An internship with the Bank is a form of mutual enrichment: the Bank beneﬁ ts from the contribution made by the candidate who, thanks to their recent studies, is up-to-date on what the market offers in terms of new processes, procedures, methods and tools; the intern is facilitated in their choice of career because they have the chance to apply in practice the things that they have learnt in theory and verify their aptitude for this particular profession.

Alongside BPM’s traditional commitment with the universities, it also takes part in special projects in favour of high schools students to help them develop professional skills. 2009 was the year of the Vivaio Project, an initiative proposed and coordinated by the consultancy that helps select personnel for the Bank. This project gave ﬁ nal-year students the chance to gain work experience at certain companies. Before they enter the Bank, the students meet people already working at BPM who can tell them about their own training and career experience. Students who want to take part in the initiative are then selected by the consultancy and begin their internship. Starting from this ﬁ rst-hand testimony, the purpose of the project is to allow the students to gain experience that will help them develop key skills which they can use to get a job.

227 228 THE PARK IN VIA MASSAUA Considerable improvements have been made to the park next to the Bezzi Services Centre to make it safer and more pleasant for the public to use: above all more solid paving and keeping the play area clean to avoid children getting hurt if they fall, but also the planting of numerous mature trees to increase the amount of shade, as well as extraordinary maintenance to benches and fences.

SOCIAL HOUSING In 2009 works continued on the Social Housing project which BPM joined in 2007 by making a 10 million euro subscription to the “Fondo Abitare Social” ethical real estate fund. During the year, a more efﬁ cient work model was developed which made it possible to start another two projects involving the areas of land granted under concession by the Municipality di Milan in Via Cenni and Via Rasario (Figino), for which international tenders have been held for their design and construction timelines. In addition to these initiatives, there is also the one in Via Ferrari (Milan).

Photo on other page:“House with Peasants “, Giovanni Migliara. Owned by Fondazione Cassa di Risparmio di Alessandria

The territorial expansion of Cassa Hyperspatialism pays particular di Risparmio di Alessandria continued attention to the individual conceived with its ﬁ rst branch in Liguria as a fragment of the universe. (Campo Ligure), opened in 1995.

229 BPM and Banca di Legnano have continued their long-standing collaboration with the Fondazione Famiglia Legnanese. In particular, Banca di Legnano supports a project to grant bursaries for high school students, university students about to graduate and those who have already graduated1. Signiﬁ cant support is also given by Banca di Legnano to the Fondazione Comunitaria del Ticino Olona, of which it is a founding member. During the course of 2009, the Foundation issued three tenders (for more than 500,000 euro) to promote a better quality of life in the community, stimulating civil, cultural, social, environmental and economic development. Banca di Legnano also continued holding art exhibitions at its head ofﬁ ce in Legnano including “The drawings of Giancarlo Pozzi between personal research and collaborations with Baj, De Chirico, Duchamp, Fontana, Giacometti, Lam and Mirò” and “The Mantle, the Cross, the Battle. Symbols and images of the Emperors from Germany to Legnano”.

Cassa di Risparmio di Alessandria devolved an amount equal to the cost of its traditional Christmas gifts to customers to build ten fresh water wells in an underdeveloped area of Benin in Africa.

On the solidarity front, WeBank with the Children in Crisis Association supported a project entitled “On the girls’ side”, which involved paying for the schooling of 10 girls in Tanzania for 4 consecutive years; for 2010, together with FAWE (Forum for African Women Educationalists) and Viaggi Solidali, a travel co-operative, it is planning a journey for a number of employees to get to know the

1 In 2009 Euro 87,000 was donated to this Foundation, which used it for 29 bursaries.

230 communities and the real conditions in which these girls live. WeBank’s local vocation, on the other hand, took the form of a three-year sponsorship of Ciak, the historical Milanese theatre which transferred about a year ago to La Fabbrica del Vapore.

As regards Bipiemme Private Banking SIM, investing in the community again involved principally the AFRICAMORE event, which was born of its ﬁ ve-year collaboration with Cesvi (Cooperazione e Sviluppo) to support the “Let’s stop Aids at birth” project launched in Zimbabwe, Uganda, Congo and South Africa: in 2009 this important event included a concert by PFM (Premiata Forneria Marconi). This year, the SIM, together with BPM and Banca di Legnano, again supported the Leoni di Potrero Association, created by Esteban Cambiasso and Javier Zanetti to help resolve the problems linked to the social isolation of children and development of their motor skills.

“The Little Pink House”, Ernesto Crespi. Owned by Banca di Legnano

231 The partnership with the Harbour Club was conﬁ rmed for the fourth year running for the promotion of the “International Swimming Meeting”. Important support was also given to ActionAid for the charity event organised in Milan in November by purchasing ten tickets on behalf of customers for the Nnena Freelon dinner concert.

Many initiatives in the community see the participation of Anima SGR:

• “A Work of Art for Milan” together with the Milan Diocesis Museum – Fondazione Sant’Ambrogio, dedicated in 2009 to “La Natività” by Lorenzo Lotto; • sponsorship of Milan’s Piccolo Theatre; • sponsorship of the Sala delle Colonne of the Franco Parenti Theatre; • the “Premio Anima Arte”, which offers emerging artists the possibility of internships at prestigious contemporary art institutions around the world; • the Economy and Savings Forum, an initiative launched in 2000 dedicated to economic scenarios and ﬁ nancial markets.

“Composition”, Mario Sironi. Owned by Banca Popolare di Milano

232 COMMERCIAL INITIATIVES WITH AN IMPACT ON THE COMMUNITY

Our Group has always operated to produce concrete results for the territory, in favour of the community and in direct support for the success of the business. In this way, in addition to guaranteeing community support via donations and sponsorship, we also promote other initiatives.

FARESOLIDALE (SOLIDARITY) Our commitment to the community also takes form in Faresolidale, a multifunctional offer reserved for the non-profi t world: dedicated products, innovative systems for gathering donations, and a website designed to inform, give visibility and facilitate contacts between the protagonists of solidarity. Through Faresolidale we continue and develop in a consistent way our traditional relationship with the territory, thereby completing the support that we offer to culture, solidarity and art, creating a point of contact and exchange between non-profi t and profi t, association and companies, volunteers and donors.

In 2009 Faresolidale carried out a survey to understand better what the critical areas are that the Third Sector currently has to face and what methods could be best to sustain growth and development with instruments and services of use to the day-to-day work of the organisations. This research made it possible to identify the areas

233 234 that are perceived as being weak in speciﬁ c goods and services. The data that emerged provided BPM with an adequate benchmark for the development of future projects able to respond to the changing needs of all concerned. Given the previous year’s success, Faresolidale was again in 2009 the lead sponsor of the Fund Raising festival, an event dedicated to those who operate in and for the non-proﬁ t world, with two objectives: to encourage the sharing of “good practices” and to exchange experiences, creating a network of diverse entities that work in the Third Sector at various levels.

Banca Popolare di Milano sustained “Gimme 5”, the summer camp for the boys of Pallacanestro Varese, and sponsored the Stramilano, the Milan Marathon that the BPM brand has accompanied from the start. Thanks to the contribution of Banca Popolare di Milano, Donatello’s recently restored statue of “David” was exhibited at Fieramilanocity in the spring as part of a review dedicated to Italian excellence. On 7 December 2009, during the holiday of Sant’Ambrogio, patron saint of Milan, BPM and the Cultural Heritage Ministry made possible a special opening of two of the city’s most important state museums, the Pinacoteca di Brera and the Cenacolo Vinciano at Santa Maria delle Grazie.

In 2009 Banca di Legnano was again the lead sponsor of the “Gran Premio Banca di Legnano – Coppa Bernocchi” international cycling race, organised by U.S. Legnanese, and of the Palio di Legnano, a major public event that is now of national renown.

In 1998 Banca Popolare di Milano 1999 sees the birth of Bad Painting, acquires Banca 2000 SpA – the former widespread among young painters, INA Banca SpA – and Banca Akros. which exalts banal themes and plays down those considered important with frivolous images.

235 Banca Popolare di Mantova was involved in the following important initiatives in 2009: • “Festival delle Passioni” (four days of meetings in the city streets with musicians and cooking experts); • organisation of a high level conference on the economy entitled “Grandi sﬁ de e passioni mantovane: Banca Popolare di Mantova e Bipiemme Gestioni 1 incontrano Nuvolari a Palazzo Te”; • “Concerti della Via Lattea” organised at customers’ farms; • a football tournament in favour of the “Casa di Beniamino”, a shelter for disadvantaged young people with drug problems; • an event to celebrate the Carlo Poma Hospital; • a volleyball tournament by ASD Nuovo Group Sportivo; • a sports tournament organised by Emmegi Service.

Numerous conferences in which WeBank took part, for example: • Banking Forum – “Organisational simpliﬁ cation, reducing costs and increasing productivity: what choices for banks?”; • Università Bocconi – “From the line to the circle via the rectangle: how corporate geometry changes”; • Monnalisa – “BRAND 2.0 – A guide to participatory, interactive marketing on the web”; • MIP Alumni – “Customer Intelligence and CRM and Customer experience in online banking”.

1 The name of Anima SGR prior to the merger.

236 Thanks to co-sponsorship of the Trofeo Gruppo Campari, Bipiemme Private Banking SIM has been promoting the “Golf Tour” since 2006; this is a series of tournaments that bring together customers and members of the club in moments of relaxation and cultural entertainment.

Banca Akros has promoted numerous initiatives, sponsoring the following during the course of 2009: • golf tournament to support the Urology Department of the Università Vita Salute S. Raffaele; • an exhibition on terrorism in Milan in the Seventies, entitled “VI.TE”; • two concerts favour of Sostegno Genovese, an association of solidarity for pain therapy for cancer patients; • transfer of the “Madonna del Latte” by Borgognone to the Filatoio Rosso in Caraglio, for the “Rose” exhibition; • “Stories”, an exhibition of the works of the painter Deborah Hirsh to spread knowledge and awareness of contemporary art.

Bipiemme Private Banking SIM Golf Tour

237 238 For the second year running, Banca Akros was the promoter of the initiative entitled “Giovani di sana e robusta Costituzione”, a series of encounters to get to know the historical and ideological origins of the Italian Constitution, as well as the principles that it establishes 1.

Since 2007, Anima SGR has been the sponsor of the Team Maggi, a medium-long distance cycling team that takes part in more than 20 races each year all over Italy.

An initiative of the entire Group concerns the catalogue of the “Counting on you” ﬁ delity programme. A prize area called “Intorno a noi” was created within it in 2009, featuring ecocompatible and fairtrade projects and goods, including: • the “Schools in Sierra Leone” project promoted by ActionAid, a non-proﬁ t organisation; • the possibility to convert the points accumulated by carrying out bank transactions into trees to be planted, thanks to the collaboration

with AzzeroC02. We also launched a special promotion during the Christmas period: for each tree requested by customers, BPM undertook to plant another.

1 This project obtained patronage from the Ofﬁ ces of the Prime Minister and the President of the Republic, the Lombardy Region, the Province of Milan and the Municipality of Milan.

Banca Popolare di Mantova was 1999 sees the birth of Stuckism, born in October 1999, founded an artistic movement that promotes and administered thanks to the ﬁ gurative painting in opposition involvement of leading exponents to conceptual art. of the local economy.

239 MEDIA

Communication through the media is an important tool for the BPM Group to keep in touch with its various stakeholders. The main objective of this activity is to spread the news about initiatives of particular importance for strategic and operating purposes, developing a relationship of maximum clarity and transparency versus the ﬁ nancial community and public opinion. Each Group company has its own website where it explains its identity and values, presents information on products and services, gives the main news items and press releases (111 in 2009 at a Group level), as well as its ﬁ nancial statements and presentations of its results.

BPM’s Press Offi ce, which forms part of the External Relations Department, operates in continuous contact with the media. Since 2009, the Press Offi ce has made use of an external agency which optimises visibility and the opportunities for communication. The Bank also uses this type of consultancy to build signifi cant relationships with subjects who may be interested in working together with BPM and to protect the Bank’s reputation. The function of the Press Offi ce is to control and directly update their mailing lists and to monitor periodically the editorial offi ces of publications to take timely advantage of any occasions for visibility, while also making suggestions that could lead to communication.

240 Cassa di Risparmio di Alessandria continues to make the weekly television programme “Oggi per Domani”, which deals with topics of interest for the local economy in Piedmont and Liguria, hosting the representatives of trade associations or entities that do social work and presenting events organised by Cassa di Risparmio di Alessandria on its own or together with third parties. These can range from the opening of a new branch to discussion on individual sectors of the economy, such as industry, skilled trades, commerce, agriculture or the enhancement of aspects of the territory linked to peculiarities that may be oenogastronomic, historical, artistic or geographical. In 2009, this intense activity led to more than 26,000 television appearances, in addition to 4,400 radio appearances.

“Under the Moon”, Lodovico Cavaleri. Owned by Banca Popolare di Milano

241 During the course of 2009, Banca Akros organised various conferences dealing with important topics of economics and current affairs; the Bank is constantly present in the main ﬁ nancial newspapers (over 1,300 articles in 2009).

In 2009, Bipiemme Gestioni SGR and Anima SGR had frequent contact with the ﬁ nancial media through interviews, analyses and debates on market trends and the asset management sector. 200 articles relating to the company appeared in the press during the year.

242 ENVIRONMENT

243 1933 – “Houses in Cadore”, Adriano Spilimbergo. Owned by Banca Popolare di Milano ID CARD

Compensation of C02 emissions: more than 300 trees planted in the “BPM Wood”

■ 1 Heat: 48,386 Kcal/m2 Figures at the end 2009 ■ 1 Electricity: 138 KWh/m2 ■ 1 Water: 468,291 m3 ■ 2 Paper: 2,230,135 Kg ■ 2 Waste disposal: 1,556,074 Kg ■ 3 Corporate travel: 4,278,530 Km/year

1 Consumption by the Parent Bank, Banca di Legnano, Cassa di Risparmio di Alessandria, WeBank, Banca Akros, Bipiemme Private Banking SIM, Anima SGR and Ge.Se.So. 2 Consumption of paper and waste by the commercial banks, Banca Akros, Bipiemme Private Banking SIM, Anima SGR and Ge.Se.So. 3 Kilometres travelled by the Parent Bank, Banca di Legnano, Cassa di Risparmio di Alessandria, WeBank, Banca Akros, Bipiemme Private Banking SIM, Anima SGR and Ge.Se.So.

! Figures and Ratios page 276

244 ENVIRONMENT

We are aware of the fact that the Group’s activities have an impact on the environment, so when we make certain strategic decisions, we think that it is right to take account of environmental sustainability.

As a ﬁ nancial institution, our commitment to the environment is expressed by paying attention to the direct effects generated by our day-to-day work, not forgetting the indirect effects, by making all of the people that we deal with, both internal and external, more aware of the problem. To this end, we constantly monitor our consumption of energy and raw materials, promoting and sharing attitudes that are environmentally responsible, while taking a concrete commitment versus the local territory and community through speciﬁ c, targeted initiatives.

1971 “Man gathering olives”, Eleonora Di Raimondo. Owned by Banca Popolare di Milano

245 CONSUMPTION, CORPORATE TRAVEL AND WASTE MANAGEMENT

In addition to monitoring our consumption of raw materials, we have also undertaken to ﬁ nd new solutions to reduce them and limit their impact on the environment. The same logic has dictated a rationalisation of the number of vehicles in the company car pool, as well as of the number of kilometres that they travel. We also pay attention to the disposal and recycling of waste in accordance with current regulations.

1929-1930 “Still Life”, Ottone Rosai. Owned by Banca Popolare di Milano

246 ENERGY CONSUMPTION AND PRODUCTION For many years now we have been using green energy produced 100% by renewable sources for our needs. As recommended by BPM, this decision was extended to the other Group banks last year. Moreover, for a few years some of our buildings (the Bezzi Services Centre in Milan and the Foggia ofﬁ ce) have been generating electricity through solar panels. In 2009, the two BPM systems produced 5% more than expected. Based on our positive experience with these ﬁ rst panels, we are considering whether to increase our photovoltaic production capacity by installing new systems.

The Energy Saving Project continued in 2009, following the guidelines indicated in last year’s Social Responsibility Report. Whenever branches are refurbished, energy saving techniques are applied with greater rigour than in the past. On average this has led to 20% reductions in the consumption of electricity for lighting purposes. As usual, monitoring the results achieved was down through the Consumption Database, which for years has been the most effective instrument for controlling energy costs. Other Group decisions in this area include Banca Akros’s plan to install photovoltaic panels on the roof of its head ofﬁ ce. The Bank is also planning to replace its current light bulbs, over time, with the latest generations of LED bulbs, estimating an overall energy saving that could be as much as 45%.

Solar panels on the roof 247 of the Bezzi Services Centre PAPER

There are numerous initiatives within the Group for reducing the consumption of paper: in some cases they are formal interventions, ! Figures and Ratios aimed both at employees and at external stakeholders, in others they page 276 are a question of spontaneous behaviour on the part of individuals that then become more and more widespread within the same structure, which shows a growing attention to environmental matters.

One of the formal initiatives is the Parent Bank’s use of 100% ECF (elemental chlorine free) paper, while other companies use recycled paper for speciﬁ c projects (such as the Anima Times newsletter). At Group level, we are also working towards a progressive reduction in paper-based documentation: there is much wider use of electronic ﬁ ling of documents instead of using printed versions and photocopies, there is a lower number of paper forms and print-outs used in branches (around 13% of the forms used are on-line) and preference is given to using the on-line channel for sending requests for the Mutual Healthcare Fund. The Group also tries to promote the same sort of attitude among its customers. During the course of 2009, a successful campaign was launched as an incentive to use on-line accounting documents (which now account for around 30% of the total). We have also eliminated the printing of RID payment advices.

248 Less formally, more and more frequently individuals in the various structures pay more attention to reducing the quantity of documents produced and to reusing paper that has only been printed on one side. An index of this commitment is the 22% decrease in the number of photocopies requested from the Parent Bank’s photocopying centre.

CAR POOL

With a view to environmental protection, the BPM Group undertakes to renew its car pool frequently to ensure that it complies with all EU directives on matters regarding pollution. To this end, some Group companies use bifuel cars (that can run on either petrol or LPG), guaranteeing even lower emissions of polluting agents.

! Figures and Ratios BPM has also undertaken to reduce the number of cars in its car page 276 pool, thereby reducing the number of kilometres travelled, and creating company car pools closer to the ofﬁ ce of the people who use the service.

BPM CAR POOL

2009 2008 2007 Total number of vehicles, of which: 179 187 200 Cars 177 184 200 Motorcycles 2 3 n.a. Kilometres travelled 2,424,565 2,548,495 2,747,203

The ﬁ rst branch of Banca Popolare di 1999 saw the development of the Mantova is opened in 2000 with eight Synaesthetic movement, which more being inaugurated soon after. proposes utopian research into a single total work of art by an interchange of expressive imagery.

249 DIFFERENTIATED WASTE DISPOSAL

The BPM Group collects its waste on a differentiated basis, equipping

! Figures and Ratios collection points with separate containers for paper, toner and plastic. page 276 There are also tin can containers at refreshment stands. The contract with our waste disposal provider states that the process of recovering or disposing of waste must comply with current regulations, giving preference, where possible, to the recovery of material through authorised plants.

1984 “Fallen Objects”, Liberio Reggiani. Owned by Banca Popolare di Milano

250 PROMOTING AND SHARING “GREEN ATTITUDES”

The Group promotes renewable sources to its customers, offering dedicated ﬁ nancial packages such as “Photovoltaic Loan”, the “Ecological Package” and “Clean Air” (see the chapter on “Customers”). In 2009, the Group ﬁ nanced photovoltaic systems for families, companies and condominiums that produced 12,609,500 Kw/h per year, avoiding the emission of 7,800 tonnes of CO2 per year (conversion parameter 1Kw/h = 0.62 Kg CO2). This is enough electricity to satisfy the average annual requirements of around 5,000 households.

In 2009, we activated a special agreement with Energrid, a new energy provider, which allows all employees and members to buy energy produced by renewable sources at special conditions and to use an information service on the free energy market that explains its opportunities and potential. The offers and services proposed guarantee the supply of green energy and help safeguard and protect the environment through Renewable Energy Certiﬁ cates (RECs, an international system of certiﬁ cation designed to promote and develop energy from renewable sources) equal to their consumption.

In 2008 BPM acquires Banca Popolare Rectoversion developed between 2002 di Mantova and launches a public and 2004: the pictures are painted purchase offer for 100% of Anima on both sides of the pictoric support, SGR, which was then absorbed which is ﬁ rst fretworked. by Bipiemme Gestioni SGR in 2009.

251 The BPM Group also plays a direct role, guaranteeing its presence as a speaker at debates on green topics and initiatives of mobilisation for energy savings.

• Again in 2009, on 13 February, Banca Popolare di Milano joined the “Mi illumino di meno” (I use less light) initiative, the international mobilisation day in the name of energy savings promoted with the patronage of the European Parliament. Our participation took the form of switching off the lights on the facade of the head ofﬁ ce in Piazza Meda, the signs and outside lights of the Services Centre in Via Bezzi and the luminous signs of the Rome ofﬁ ce in Piazzale Flaminio. This initiative was agreed with the employees by keeping them suitably aware and informed.

• On 5 June, on World Environment Day, AzzeroCO2 held a conference at Milan’s North Park on the topic “Beyond the crisis: business, sustainability and territory” to divulge the results achieved by its partners in offsetting their emissions (see “BPM Wood” below). The companies and institutions that took part in this forestation project related their process of sustainability with the objective of sharing their experience with the other players in the area and laying the bases to replicate them. The purpose of the meeting was to show how sustainability-oriented strategies are to all effects the most valid way of contrasting the current crisis and to foster economic and cultural growth.

252 • On 16 June BPM took part in the “Green Globe Banking Conference: banks for the environment”. This event, which has reached its third edition, gave Italian banks the chance to share their experiences on the environmental sustainability front and to compare themselves with current best practice, also internationally, in matters regarding the relationship between ﬁ nancial institutions, environment and territory.

• At the beginning of October Banca Popolare di Milano participated in Zeroemission, an event dedicated to the development of renewable energy, emission trading

The FSC brand and environmental sustainability in Italy and in the (Forest Stewardship Council) identiﬁ es the products containing Mediterranean market. For the occasion, the Bank wood from the forests managed chose to print all of its advertising materials on recycled in a correct and responsible way in accordance with tight FSC ecological paper using eco-compatible inks based environmental, social and economic standards. www.fsc-italia.it on vegetable oils.

“Zeroemission” Fair in Rome Banca Popolare di Milano Stand

253 COMMITMENT TO THE COMMUNITY AND TERRITORY

In line with its territorial vocation, the BPM Group has been involved in various initiatives in favour of the community and the territory. This includes its commitment to offset the environmental impact of the activities in certain structures of its head ofﬁ ce and to maintain certain green areas in the city. For example, BPM manages the park in Via Massaua, while Anima SGR looks after some ﬂ owerbeds in two historical districts of the city, Brera and Piazza San Marco, adding to the general improvement of the urban area and making a tangible contribution towards increasing Milan’s greenery.

“The Four Seasons: Summer” (detail), Filippo Palizzi. Owned by Banca di Legnano

254 EMISSION COMPENSATION: “BPM WOOD” IN MILAN’S NORTH PARK

Following a pilot scheme at one of the Parent Bank’s units, which in 2008 offset its greenhouse gas emissions, in 2009 the Group progressively extended its compensation project to other structures, initiatives and events: • marketing activities; • the AGM, which brought together more than 6,000 people from all over Italy at the Milan Trade Fair; • publication of the “Counting on you” catalogue, which offers customers the chance to contribute actively to the initiative by transforming the points accumulated into trees. • the stand created for Zeroemission - Rome2009; • the AFRICAMORE event organised by Bipiemme Private Banking SIM in favour of a solidarity project; • the 2008 Social Responsibility Report.

All of these compensations have resulted in the planting of more than 300 trees in the “BPM Wood” in Milan’s North Park: a large metropolitan area that is destined to become the city’s green lung. By choosing the North Park, BPM believed this was the best way to demonstrate in a concrete and visible way its commitment to safeguarding and protecting the environment in the territory where its operates,

BPM Wood 255 also considering that many of its branches are in the vicinity.

By way of recognition of the value of this compensation process, in November 2009 BPM received the ﬁ rst AIFIn “Bank and Territory” Award in the category entitled “Initiatives to safeguard and protect the environment”. The AIFIn (Association Italiana Financial Innovation) Award is an annual prize that intends to promote the role of territorial banks in relation to Corporate Social Responsibility, emphasising an approach to banking that is based on sustainable growth.

All of these compensation activities were carried out in partnership

with AzzeroCO2, a company set up by Legambiente, Ambiente Italia and the Kyoto Club and accredited as an ESCO (Energy Service Company), which offers technical and scientifi c support in the defi nition of strategies for promoting energy effi ciency.

Our collaboration with the North Park did not end with the BPM Wood, but evolved with the other initiatives explained in the chapter on “Community” at page 225.

As part of a wider project to get more Group companies involved, in 2010 the “CRA in green” project will becoming operative. This foresees

compensating the CO2 emitted by Cassa di Risparmio di Alessandria – including the emissions caused by employees driving from home to the ofﬁ ce - by planting trees in the Po/Orba riverside park.

Lastly, BPM has created a database that is accessible to all employees, which effectively brings together all of the information needed to calculate the environmental impact of each structure.

256 FIGURES AND RATIOS

257 c. 1426 – “Madonna with Child and San Giovannino”, Bronzino Agnolo. Owned by Banca Popolare di Milano CUSTOMERS

TOTAL NUMBER OF CUSTOMERS Total Individuals Companies

Commercial banks, of which: 1,318,769 88.5% 11.5% Banca Popolare di Milano 1 1,014,275 88.8% 11.2%

Banca di Legnano 158,238 86.6% 13.4%

Cassa di Risparmio di Alessandria 96,238 85.3% 14.7%

Banca Popolare di Mantova 4,395 63.9% 36.1%

WeBank 45,623 98.2% 1.8%

Afﬁ liates with specialist skills, of which: 532,586 98.2% 1.8%

Banca Akros 3,076 60.5% 39.5%

Anima SGR 523,000 98.4% 1.6%

1 Includes 6,510 customers of Bipiemme Private Banking SIM.

NB (this applies to all of the tables): 1. Common customers are shown under each bank. 2. The number exclude so-called “anomalous” customers (e.g. doubtful and protested) and employees or ex-employee pensioners who only have a single account at the windows reserved for the staff. 3. Unless stated otherwise, the information on the customers of Bipiemme Private Banking SIM are included in the Parent Bank’s ﬁ gures.

258 INDIVIDUAL CUSTOMERS BREAKDOWN BY GENDER Women Men Commercial banks, of which: 50.7% 49.3% Banca Popolare di Milano 50.8% 49.2% Banca di Legnano 51.9% 48.1% Cassa di Risparmio di Alessandria 51.6% 48.4% Banca Popolare di Mantova 44.6% 55.4% WeBank 43.4% 56.6% Afﬁ liates with specialist skills, of which: 43.0% 57.0% Banca Akros 45.1% 54.9% Anima SGR 43.0% 57.0%

AVERAGE AGE AND BREAKDOWN BY AGE Average Below From From From Over age 18 years 19 to 25 26 to 45 46 to 65 65 years years years years Commercial banks, of which: 53.3 1.2% 3.3% 32.8% 36.0% 26.7% Banca Popolare di Milano 53.5 1.4% 3.1% 32.3% 36.1% 27.1% Banca di Legnano 53.6 0.7% 3.5% 31.7% 36.6% 27.5% Cassa di Risparmio di Alessandria 55.8 1.1% 2.4% 27.6% 37.2% 31.7% Banca Popolare di Mantova 47.6 2.4% 3.6% 42.0% 38.4% 13.6% WeBank 42.7 0.2% 8.5% 55.0% 28.8% 7.5% Afﬁ liates with specialist skills, of which: 54.0 0.3% 0.8% 25.1% 46.8% 27.0% Banca Akros 55.0 0.3% 0.8% 25.1% 46.8% 27.0% Anima SGR 54.0 n.a. n.a. n.a. n.a. n.a.

FOREIGN CUSTOMERS Total Eastern Rest of Africa Asia South Rest of Europe Europe America the world

Commercial banks, of which: 43,028 33.3% 6.2% 20.7% 21.5% 15.5% 2.7% Banca Popolare di Milano 38,772 32.6% 5.7% 21.3% 22.0% 15.9% 2.6% Banca di Legnano 2,907 40.7% 5.9% 17.7% 19.9% 12.0% 3.8% Cassa di Risparmio di Alessandria 357 58.8% 9.0% 16.0% 7.0% 7.3% 2.0% Banca Popolare di Mantova 172 34.3% 12.8% 22.1% 19.8% 9.3% 1.7% WeBank 820 30.2% 30.1% 7.0% 12.3% 13.9% 6.5%

259 CORPORATE CUSTOMERS

NUMBER OF CORPORATE CUSTOMERS Total Small Medium- Large Other 1 businesses sized enterprises enterprises Commercial banks, of which: 151,226 91.1% 8.2% 0.3% 0.4% Banca Popolare di Milano 113,374 90.6% 8.7% 0.3% 0.4%

Banca di Legnano 21,268 92.1% 7.6% 0.1% 0.2%

Cassa di Risparmio di Alessandria 14,189 93.5% 5.4% 0.1% 1.0%

Banca Popolare di Mantova 1,589 87.5% 12.0% 0.3% 0.2%

WeBank 806 99.8% 0.2% 0.0% 0.0%

Afﬁ liates with specialist skills, of which: 9,714 16.5% 13.3% 70.2% 0.0%

Banca Akros 1,214 16.5% 13.3% 70.2% 0.0%

Anima SGR 8,500 n.a. n.a. n.a. n.a.

1 This includes Governments and ﬁ nancial institutions.

SMALL BUSINESSES: DISTRIBUTION BY ECONOMIC SECTOR Total Agriculture Industry Skilled Services Commerce Other trades Commercial banks, of which: 137,794 3.2% 15.7% 21.7% 23.3% 13.6% 22.5% Banca Popolare di Milano 102,743 2.7% 16.4% 21.0% 24.6% 13.6% 21.7%

Banca di Legnano 19,584 0.6% 15.2% 26.4% 19.0% 12.3% 26.5%

Cassa di Risparmio di Alessandria 13,272 10.1% 11.6% 20.5% 17.5% 15.1% 25.3%

Banca Popolare di Mantova 1,391 12.9% 16.6% 19.3% 22.4% 20.5% 8.3%

WeBank 804 0.5% 5.1% 11.9% 66.0% 15.4% 1.0%

Afﬁ liates with specialist skills, of which: 200 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% Banca Akros 200 0.0% 0.0% 0.0% 100.0% 0.0% 0.0%

260 LENGTH OF RELATIONSHIP Total < 1 Year 1-5 years 6-10 Over 10 years years Commercial banks, of which: 151,226 9.8% 33.9% 20.3% 36.0% Banca Popolare di Milano 113,374 9.5% 33.5% 20.2% 36.9%

Banca di Legnano 21,268 11.1% 34.4% 20.3% 34.3%

Cassa di Risparmio di Alessandria 14,189 8.5% 32.3% 22.2% 37.0%

Banca Popolare di Mantova 1,589 20.5% 57.0% 22.5% 0.0%

WeBank 806 22.7% 65.5% 9.4% 2.4%

Afﬁ liates with specialist skills, of which: 1,214 17.0% 21.1% 31.2% 30.7% Banca Akros 1,214 17.0% 21.1% 31.2% 30.7%

COMPANIES IN THE THIRD SECTOR Total Social co- Associations Foundations Religious operatives and other entities Commercial banks, of which: 6,818 450 4,721 221 1,426 Banca Popolare di Milano 5,159 390 4,031 203 535

Banca di Legnano 672 28 329 11 304

Cassa di Risparmio di Alessandria 920 28 318 7 567

Banca Popolare di Mantova 2743020

WeBank 40 0 40 0 0

Afﬁ liates with specialist skills, of which: 23 0 16 5 2

Banca Akros 23 0 16 5 2

TOTAL 6,841 450 4,737 226 1,428

261 CUSTOMER SATISFACTION

INDIVIDUAL CUSTOMERS’ RESULTS (%)

2009 2008 2007 Vote Vote Vote Vote Vote Vote Vote Vote Vote 8-10 6-7 1-5 8-10 6-7 1-5 8-10 6-7 1-5 Commercial banks, of which: 60.2 30.5 9.3 56.2 32.6 11.2 58.5 30.3 11.2 Banca Popolare di Milano 58.6 31.7 9.7 55.4 33.7 10.9 57.9 30.4 11.7

Banca di Legnano 69.2 24.7 6.1 63.5 27.5 9.0 61.2 30.4 8.4 Cassa di Risparmio di Alessandria 57.0 32.0 11.0 50.5 31.5 18.0 57.8 29.8 12.4

SMALL BUSINESS CUSTOMERS’ RESULTS (%)

2009 2008 2007 Vote Vote Vote Vote Vote Vote Vote Vote Vote 8-10 6-7 1-5 8-10 6-7 1-5 8-10 6-7 1-5 Commercial banks, of which: 56.9 30.8 12.3 59.8 28.9 11.3 58.6 30.3 11.1 Banca Popolare di Milano 56.9 30.1 13.0 60.2 29.0 10.8 58.3 30.1 11.6

Banca di Legnano 59.4 31.3 9.3 64.0 26.0 10.0 62.7 29.3 8.0 Cassa di Risparmio di Alessandria 49.0 39.0 12.0 51.0 32.0 17.0 54.7 32.0 13.3

262 HANDLING OF COMPLAINTS

TYPE OF COMPLAINTS RECEIVED Total Current Credit Saving Other accounts & services

Commercial banks, of which: 3,123 1,500 526 974 123 Banca Popolare di Milano 2,831 1,360 489 873 109

Banca di Legnano 71 22 9 30 10

Cassa di Risparmio di Alessandria 175 96 25 52 2

Banca Popolare di Mantova 5 4 1 0 0

WeBank 41 18 2 19 2

Afﬁ liates with specialist skills, of which: 2 0 0 0 2

Banca Akros 2 0 0 0 2

TOTAL 3,125 1,500 526 974 125

COMPLAINTS HANDLED Total Accepted Partially Rejected accepted Commercial banks, of which: 3,086 1,106 371 1,609 Banca Popolare di Milano 2,814 995 342 1,477

Banca di Legnano 69 10 6 53

Cassa di Risparmio di Alessandria 168 85 20 63

Banca Popolare di Mantova 5 1 0 4

WeBank 30 15 3 12

263 ETHICAL FUNDS

NUMBER OF CUSTOMERS WITH ETHICAL FUNDS

2009 2008 2007 Commercial banks, of which: 3,156 2,361 2,250 Banca Popolare di Milano 2,446 2,007 1,939

Banca di Legnano 446 333 295

Cassa di Risparmio di Alessandria 67 21 16

Banca Popolare di Mantova 15 0 0

WeBank 182 0 0

Afﬁ liates with specialist skills, of which: 76 50 43

Bipiemme Private Banking SIM 76 50 43

TOTAL 3,232 2,411 2,293

PERFORMANCE OF THE FUNDS BELONGING TO THE VALORI RESPONSABILI SYSTEM 1 Fund Net yield Benchmark Average Position of the fund yield yield for the in ranking 2009 category 2 At 31.12.09

38th out of 44 short-term euro government Monetary Fund +1.85% +2.76% +3.23% bond funds Mixed Bond Fund +5.64% +4.26% +6.45% 13th out of 29 mixed bond funds

Balanced Fund +24.60% +14.77% +14.26% Best of 28 balanced funds

Equity Fund +35.45% +21.09% +21.94% Best of 32 international equity funds

1 Source: Anima SGR; the Assogestioni categories were used for these rankings. Fund returns are shown net of tax, management fees and other expenses. The benchmark returns are shown only net of tax.

2 Return for the category in question according to the Fideuram Composite Index.

264 MEMBERS AND SHAREHOLDERS

COMPOSITION OF SHARE CAPITAL AT 31 DECEMBER 2009 Total shareholders Of which members Of which non-member shareholders Number Shares Number Shares Number of Shares of share- owned of owned non-member owned holders members shareholders

BPM employees 1 8,504 14,116,096 7,660 14,032,824 844 83,272

Group employees 1 526 526,273 450 448,167 76 78,106

Customers 38,966 57,758,637 30,505 47,405,483 8,461 10,353,154

Institutional investors 2 249 177,622,101 2 879,760 247 176,742,341

Large Members/ Shareholders 3 76 34,415,145 28 7,317,415 48 27,097,730 Strategic partners 4 15 22,773,295 11 16,268,660 4 6,504,635

Other 48,355 107,822,684 12,167 24,903,831 36,188 82,918,853

TOTAL 96,691 415,034,231 50,823 111,256,140 45,868 303,778,091

1 Including children that are minors. 2 Qualiﬁ ed operators (insurance companies, banks, trust companies etc.) and UCITS (funds, pension funds and Sicavs). 3 Holders of at least 100,000 shares, not including institutional investors. 4 Includes Fondazione Cassa di Risparmio di Alessandria and 14 companies belonging to the CM-CIC Group, four of which had not applied to become members as of 31 December 2009.

COMPOSITION OF FOREIGN SHAREHOLDERS

2009 2008 2007 Number Shares Number Shares Number of Shares of share- owned of owned non-member owned holders members shareholders

Funds 90 36,986,373 63 32,072,348 104 52,517,320

Pension funds 32 11,378,409 30 9,619,888 26 10,821,133

Other qualiﬁ ed operators 80 84,175,364 76 84,026,485 95 124,574,660 TOTAL 202 132,540,146 169 125,718,721 225 187,913,113

265 GEOGRAPHICAL DISTRIBUTION OF MEMBERS AND SHAREHOLDERS AT 31 DECEMBER 2009 Total shareholders Of which members Of which non-member shareholders Number Shares Number Shares Number of Shares of share- owned of owned non-member owned holders members shareholders

Milan & Prov. of Milan 42,887 109,096,942 30,757 55,685,187 12,130 53,411,755

Lombardy 17,973 55,836,797 10,035 18,984,185 7,938 36,852,612

Lazio 3,512 11,548,399 2,500 2,519,794 1,012 9,028,605

Puglia 4,007 2,913,088 1,225 1,355,551 2,782 1,557,537

Emilia Romagna 9,015 20,209,741 3,276 10,031,514 5,739 10,178,227

Piedmont 4,740 12,350,022 1,371 4,981,790 3,369 7,368,232

Other regions/abroad 14,557 203,079,242 1,659 17,698,119 12,898 185,381,123

TOTAL 96,691 415,034,231 50,823 111,256,140 45,868 303,778,091

NUMBER OF MEMBERSHIP ADMISSIONS AND CANCELLATIONS/FORFEITURES

2009 2008 2007 Members admitted/readmitted 4,547 1,091 635

Applications rejected 0 1 2

Memberships cancelled 1 1 22 19

Memberships forfeited 2 1,942 149 3,671

1 For “breach of contractual obligations to the Bank”. 2 For “the complete loss of share ownership” or death.

BPM’S RATINGS IN 2009 3 Rating agencies Long-term debt Short-term debt Outlook Date of last review

Moody's A1 P–1 stable 27-Aug-09

Fitch Ratings A F1 negative 21-Jul-09

Standard & Poor's A– A–2 negative 03-Dec-09

3 At 31 December 2009.

266 COVERAGE BY ANALYSTS 2009 20 2008 21 2007 18

COVERAGE BY ANALYSTS AT DECEMBER 2009

Banca IMI Credit Suisse JP Morgan

Banca Leonardo Deutsche Bank KBW

Cassa Lombarda Equita sim Mediobanca

Centrobanca Exane Bnp Nomura

Centrosim Macquarie Research UBS

Chevreaux HSBC Unicredit

Citi Intermonte

ATTENDANCE AT GENERAL MEETINGS

25-Apr-09 13-Dec-08 19-Apr-08 21-Apr-07 15-Feb-07 In Proxy In Proxy In Proxy In Proxy In Proxy person person person person person BPM employees 2,815 741 810 70 997 41 1,012 44 1,940 90

Group employees 154 16 31 2 52 3 45 4 27 2 Under-age children of BPM employees 0 888 0 235 0 337 0 354 0 635 Under-age children of Group employees 0 10 0 1 020402 Total employees 2,969 1,655 841 308 1,049 383 1,057 406 1,967 729

Total other members 2,436 2,964 670 693 762 721 755 811 399 390

Grand total 5,405 4,619 1,511 1,001 1,811 1,104 1,812 1,217 2,366 1,119

GRAND TOTAL PERSONNEL 10,024 2,512 2,915 3,029 3,485

267 PERSONNEL

The “system” ﬁ gures relate to 2008 and were taken from the “Personnel Statistics” report prepared by ABI.

NUMBER OF EMPLOYEES Total Head ofﬁ ce Network Commercial banks, of which: 7,995 27.8% 72.2% Banca Popolare di Milano 6,474 29.5% 70.5% Banca di Legnano 823 15.3% 84.7% Cassa di Risparmio di Alessandria 556 21.0% 79.0% Banca Popolare di Mantova 42 14.3% 85.7% WeBank 100 62.0% 38.0% Afﬁ liates with specialist skills, of which: 666 86.8% 13.2% Bipiemme Private Banking SIM 88 28.4% 71.6% Banca Akros 262 Anima SGR 199 Other companies 1 117 TOTAL 8,661

In Banca Akros, Anima SGR and other companies, almost all of the employees work in the head ofﬁ ce. 1 Includes WeTrade SIM, BPM Ireland Plc, Fund Management, Akros Alternative and Ge.Se.So.

BREAKDOWN BY GENDER

Women Men Commercial banks, of which: 45.4% 54.6% Banca Popolare di Milano 46.0% 54.0% Banca di Legnano 33.1% 66.9% Cassa di Risparmio di Alessandria 55.9% 44.1% Banca Popolare di Mantova 42.9% 57.1% WeBank 52.0% 48.0% Afﬁ liates with specialist skills, of which: 36.1% 63.9% Bipiemme Private Banking SIM 25.0% 75.0% Banca Akros 35.5% 64.5% Anima SGR 41.7% 58.3% TOTAL 44.8% 55.2% SYSTEM 42.1% 57.9%

268 AVERAGE AGE AND DISTRIBUTION BY AGE BRACKET

Average age Distribution by age bracket Total Women Men Younger From From From Over 60 than 30 30 to 39 40 to 49 50 to 59 years years years years years old old old old old Commercial banks, of which: 42.8 41.0 44.3 8.9% 29.5% 34.6% 26.0% 0.9% Banca Popolare di Milano 43.2 41.3 44.8 8.6% 28.1% 35.2% 27.1% 0.9% Banca di Legnano 40.9 37.2 42.7 12.1% 31.7% 32.6% 22.9% 0.7% Cassa di Risparmio di Alessandria 42.3 41.9 43.0 6.7% 35.8% 33.1% 22.8% 1.6% Banca Popolare di Mantova 34.6 38.3 31.8 26.2% 50.0% 14.3% 9.5% 0.0% WeBank 38.2 39.0 37.4 9.0% 59.0% 26.0% 6.0% 0.0% Afﬁ liates with specialist skills, of which: 41.5 39.6 42.6 8.9% 35.3% 39.5% 17.5% 0.5% Bipiemme Private Banking SIM 44.3 45.0 44.0 5.7% 20.5% 45.5% 28.4% 0.0% Banca Akros 41.6 40.5 42.3 8.4% 31.7% 42.7% 17.2% 0.0% Anima SGR 38.5 34.5 42.0 11.1% 46.7% 32.7% 8.0% 1.5% TOTAL 42.7 40.9 44.2 8.9% 29.9% 34.9% 25.4% 0.9% SYSTEM 42.5 40.2 44.2

AVERAGE PERIOD OF SERVICE

Total Women Men

Commercial banks, of which: 17.1 19.5 18 Banca Popolare di Milano 17.9 16.6 19.0 Banca di Legnano 14.5 10.9 16.3 Cassa di Risparmio di Alessandria 14.7 16.0 13.0 Banca Popolare di Mantova 0.0 0.0 0.0 WeBank 4.7 5.7 3.7 Afﬁ liates with specialist skills, of which: 8.1 8.6 7.8 Bipiemme Private Banking SIM 4.0 4.0 4.0 Banca Akros 9.4 9.7 9.2 Anima SGR 6.9 7.3 6.6 TOTAL 16.5 15.5 17.3

269 DISTRIBUTION OF PART-TIMERS

Total Women Men

Commercial banks, of which: 1,065 95.9% 4.1% Banca Popolare di Milano 946 95.8% 4.2%

Banca di Legnano 59 98.3% 1.7%

Cassa di Risparmio di Alessandria 50 94.0% 6.0%

Banca Popolare di Mantova 1 100.0% 0.0%

WeBank 9 100.0% 0.0%

Afﬁ liates with specialist skills, of which: 36 97.2% 2.8%

Bipiemme Private Banking SIM 1 100.0% 0.0%

Banca Akros 26 96.1% 3.9%

Anima SGR 9 100.0% 0.0%

TOTAL 1,101 95.9% 4.1%

UNION ACTIVITY Total Strike Meeting hours hours Commercial banks, of which: 2,262 873 1,389 Banca Popolare di Milano 1,677 832 845

Banca di Legnano 541 41 500

Cassa di Risparmio di Alessandria 44 0 44

Afﬁ liates with specialist skills, of which: 197 3 194

Bipiemme Private Banking SIM 147 3 144

Banca Akros 50 0 50

TOTAL 2,459 876 1,583

270 DISCIPLINARY MEASURES Total Verbal Written Suspensions Dismissals/ warnings warnings resignations Commercial banks, of which: 71 8.5% 35.2% 45.1% 11.3% Banca Popolare di Milano 50 12.0% 24.0% 54.0% 10.0%

Banca di Legnano 16 0.0% 62.5% 25.0% 12.5%

Cassa di Risparmio di Alessandria 5 0.0% 60.0% 20.0% 20.0%

Afﬁ liates with specialist skills, of which: 3 0.0% 100.0% 0.0% 0.0%

Banca Akros 3 0.0% 100.0% 0.0% 0.0%

TOTAL 74 8.1% 37.8% 43.2% 10.8%

PROMOTIONS

Total Women Men

Commercial banks, of which: 1,319 41.8% 58.2% Banca Popolare di Milano 1,062 42.0% 58.0%

Banca di Legnano 155 35.5% 64.5%

Cassa di Risparmio di Alessandria 88 45.5% 54.5%

WeBank 14 71.4% 28.6%

Afﬁ liates with specialist skills, of which: 73 30.1% 69.9%

Bipiemme Private Banking SIM 48 18.8% 81.3%

Banca Akros 12 58.3% 41.7%

Anima SGR 13 46.2% 53.8%

TOTAL 1,392 41.2% 58.8%

271 DISTRIBUTION BY QUALIFICATIONS

University degree High school diploma Middle school diploma

Qualiﬁ cations Total Women Men Total Women Men Total Women Men

Commercial banks, of which: 23.3% 26.4% 20.7% 65.2% 64.3% 65.9% 11.5% 9.2% 13.4% Banca Popolare di Milano 22.1% 25.6% 19.1% 65.3% 64.2% 66.3% 12.6% 10.3% 14.6%

Banca di Legnano 26.7% 32.4% 23.9% 63.8% 62.1% 64.7% 9.5% 5.5% 11.5%

Cassa di Risparmio di Alessandria 26.6% 24.8% 29.0% 69.8% 71.4% 67.8% 3.6% 3.9% 3.3%

Banca Popolare di Mantova 59.5% 66.7% 54.2% 40.5% 33.3% 45.8% 0.0% 0.0% 0.0%

WeBank 41.0% 42.3% 39.6% 54.0% 53.8% 54.2% 5.0% 3.8% 6.3%

Afﬁ liates with specialist skills, of which: 44.8% 36.4% 49.6% 50.1% 56.6% 46.4% 5.1% 7.1% 4.0%

Bipiemme Private Banking SIM 31.8% 31.8% 31.8% 68.2% 68.2% 68.2% 0.0% 0.0% 0.0%

Banca Akros 48.1% 43.0% 50.9% 46.2% 49.5% 44.4% 5.7% 7.5% 4.7%

Anima SGR 46.2% 30.1% 57.8% 47.2% 61.4% 31.7% 6.5% 8.4% 5.2%

TOTAL 24.7% 27.0% 22.8% 64.2% 63.9% 64.4% 11.1% 9.1% 12.7%

DISTRIBUTION BY LEVEL

Managers Ofﬁ cials 3rd level staff 2nd level staff

Level Total Women Men Total Women Men Total Women Men Total Women Men

Commercial banks, of which: 1.6% 0.3% 2.6% 36.6% 25.0% 46.3% 59.7% 73.0% 48.5% 2.1% 1.7% 2.5%

Banca Popolare di Milano 1.6% 0.3% 2.7% 36.4% 25.1% 46.0% 60.4% 73.6% 49.2% 1.6% 1.0% 2.1%

Banca di Legnano 1.2% 0.4% 1.6% 38.6% 19.9% 47.9% 54.6% 71.7% 46.1% 5.6% 8.1% 4.4%

Cassa di Risparmio di Alessandria 1.3% 0.0% 2.9% 35.8% 26.4% 47.8% 62.2% 73.3% 48.2% 0.7% 0.3% 1.2%

Banca Popolare di Mantova 4.8% 0.0% 8.3% 31.0% 11.1% 45.8% 42.9% 55.6% 33.3% 21.4% 33.3% 12.5%

WeBank 6.0% 3.8% 8.3% 41.0% 38.5% 43.8% 45.0% 51.9% 37.5% 8.0% 5.8% 10.4%

Afﬁ liates with specialist skills, of which: 8.9% 2.0% 12.8% 50.1% 41.9% 54.7% 38.4% 50.5% 31.6% 2.6% 5.6% 0.9%

Bipiemme Private Banking SIM 4.5% 0.0% 6.1% 81.8% 86.4% 80.3% 13.6% 13.6% 13.6% 0.0% 0.0% 0.0%

Banca Akros 9.5% 1.1% 14.2% 49.2% 40.9% 53.8% 41.2% 58.1% 32.0% 0.0% 0.0% 0.0%

Anima SGR 10.1% 3.6% 14.7% 37.2% 31.3% 41.4% 45.7% 51.8% 41.4% 7.0% 13.3% 2.6%

TOTAL 2.1% 0.4% 3.4% 37.5% 25.8% 47.0% 58.3% 71.9% 47.3% 2.1% 1.9% 2.4%

272 SUPPLIERS

(D) = (A) + (B) – (C)

BREAKDOWN BY TYPE OF SUPPLIES (In thousands of Euro)

Total Services Property Technologies Number Amount % % amount % % amount % % amount of suppliers invoiced suppliers invoiced suppliers invoiced suppliers invoiced Commercial banks (A), of which: 2,515 401,315 73.2% 55.7% 16.2% 14.8% 10.7% 29.6% Banca Popolare di Milano 1,390 310,948 54.7% 45.8% 29.1% 18.6% 16.2% 35.6%

Banca di Legnano 377 30,822 100.0% 100.0% 0.0% 0.0% 0.0% 0.0%

Cassa di Risparmio di Alessandria 368 30,674 98.9% 93.7% 0.3% 2.2% 0.8% 4.1%

Banca Popolare di Mantova 80 2,659 100.0% 100.0% 0.0% 0.0% 0.0% 0.0%

WeBank 300 26,211 86.3% 72.0% 0.3% 2.5% 13.3% 25.6% Afﬁ liates with specialist skills (B), of which: 329 33,102 77.2% 57.0% 4.0% 6.2% 18.8% 36.9% Bipiemme Private Banking SIM 150 3,715 94.7% 57.1% 1.3% 27.0% 4.0% 15.9%

Banca Akros 179 29,387 62.6% 56.9% 6.1% 3.5% 31.3% 39.5%

Common suppliers (C) 276 67,617 96.4% 100.0% 0.7% 0.0% 2.9% 0.0%

TOTAL (D) excluding common suppliers 2,568 366,800 71.2% 47.6% 16.3% 16.7% 12.5% 35.7%

BREAKDOWN BY AMOUNT INVOICED

Services Property Technologies

% % amount % % amount % % amount suppliers invoiced suppliers invoiced suppliers invoiced Up to 100,000 euro 80.9% 16.5% 70.7% 20.2% 56.1% 4.7%

From 100,001 to 500,000 euro 14.9% 22.5% 23.8% 34.1% 29.4% 15.0%

From 500,001 to 1,000,000 euro 2.5% 15.5% 4.0% 20.4% 5.5% 9.1%

Over 1,000,000 euro 1.6% 45.4% 1.4% 25.3% 9.1% 71.2%

TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

273 BREAKDOWN BY GEOGRAPHICAL AREA BASED ON THE NUMBER OF SUPPLIERS North-West North-East Central Southern Italian Abroad Italy Italy Italy Italy islands Commercial banks (A), of which: 75.5% 6.5% 12.2% 3.7% 0.2% 1.8% Banca Popolare di Milano 65.3% 8.7% 16.9% 6.6% 0.3% 2.2% Banca di Legnano 92.0% 2.4% 5.0% 0.3% 0.3% 0.0% Cassa di Risparmio di Alessandria 89.1% 4.1% 6.8% 0.0% 0.0% 0.0% Banca Popolare di Mantova 86.3% 12.5% 1.3% 0.0% 0.0% 0.0% WeBank 82.7% 3.0% 8.7% 0.3% 0.3% 5.0% Afﬁ liates with specialist skills (B), of which: 84.2% 1.5% 7.0% 0.0% 0.0% 7.3% Bipiemme Private Banking SIM 96.7% 2.0% 1.3% 0.0% 0.0% 0.0% Banca Akros 73.7% 1.1% 11.7% 0.0% 0.0% 13.4% Common suppliers (C) 76.8% 7.2% 13.8% 0.4% 0.4% 1.4% TOTAL (D) excluding common suppliers 76.5% 5.9% 11.3% 3.6% 0.2% 2.4%

BREAKDOWN BY GEOGRAPHICAL AREA BASED ON THE AMOUNT INVOICED North-West North-East Central Southern Italian Abroad Italy Italy Italy Italy islands Commercial banks (A), of which: 80.6% 6.3% 8.8% 1.3% 0.5% 2.5% Banca Popolare di Milano 78.4% 6.2% 10.2% 1.6% 0.5% 3.1% Banca di Legnano 86.2% 7.1% 5.9% 0.4% 0.4% 0.0% Cassa di Risparmio di Alessandria 89.4% 7.0% 3.6% 0.0% 0.0% 0.0% Banca Popolare di Mantova 58.3% 41.3% 0.3% 0.0% 0.0% 0.0% WeBank 92.1% 2.4% 2.9% 0.0% 1.0% 1.5% Afﬁ liates with specialist skills (B), of which: 78.3% 0.6% 9.1% 0.0% 0.0% 12.0% Bipiemme Private Banking SIM 97.0% 2.0% 1.0% 0.0% 0.0% 0.0% Banca Akros 75.9% 0.5% 10.1% 0.0% 0.0% 13.5% Common suppliers (C) 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% TOTAL (D) excluding common suppliers 76.9% 6.9% 10.4% 1.4% 0.6% 3.8%

274 COMMUNITY

INTERVENTIONS BY TYPE (thousands of euro) Total Donations Investing Commercial in the initiatives with community an impact on the community Commercial banks, of which: 5,557 996 3,909 653 Banca Popolare di Milano 4,601 536 3,759 306

Banca di Legnano 361 212 150 0

Cassa di Risparmio di Alessandria 434 226 0 208

Banca Popolare di Mantova 46 15 1 31

WeBank 115 7 0 108

Afﬁ liates with specialist skills, of which: 944 523 421 0

Banca Akros 102 102 0 0

Anima SGR 842 421 421 0

TOTAL 6,501 1,519 4,330 653

DISTRIBUTION BY TYPE OF ACTIVITY (thousands of euro) Total Culture Solida- Health- Scientiﬁ c Education Sport Other rity care research Commercial banks, of which: 5,557 2,743 814 604 113 544 407 333 Banca Popolare di Milano 4,601 2,365 681 591 108 413 250 193

Banca di Legnano 361 88 49 4 0 98 60 64

Cassa di Risparmio di Alessandria 434 155 63 9 5 31 95 76

Banca Popolare di Mantova 46 27 13 0 0 3 2 1

WeBank 115 108 7 0 0 0 0 0

Afﬁ liates with specialist skills, of which: 944 683 52 36 31 40 57 44

Banca Akros 102 8 33 30 31 0 0 0

Anima SGR 842 675 19 6 0 40 57 44

TOTAL 6,501 3,426 866 640 144 584 464 378

275 ENVIRONMENT

PHOTOCOPIES (Total for the year)

Total Black & white Colour Commercial banks, of which: 8,199,045 7,518,499 680,546 Banca Popolare di Milano 1 6,949,045 6,418,499 530,546 WeBank 1,250,000 1,100,000 150,000 Afﬁ liates with specialist skills, of which: 1,948,000 1,696,000 252,000 Bipiemme Private Banking SIM 1,000,000 1,000,000 0 Banca Akros 948,000 696,000 252,000 TOTAL 10,147,045 9,214,499 932,546

1 Number of photocopies made by the Photocopying Centre.

DIFFERENTIATED WASTE COLLECTION AND DISPOSAL (kilograms) Type of waste Total Urban and Non-dangerous Dangerous/ similar waste waste Special waste Commercial banks, of which: 1.544.781 178.018 1.353.459 13.304 Banca Popolare di Milano 2 1.281.953 122.522 1.146.424 13.007 Banca di Legnano 152.779 16.820 135.663 296 Cassa di Risparmio di Alessandria 108.963 38.676 70.287 0 Banca Popolare di Mantova 1.086 0 1.085 1 Afﬁ liates with specialist skills, of which: 11.293 5.331 5.651 311 Bipiemme Private Banking SIM 1.826 0 1.761 65 Banca Akros 4.800 3.600 1.200 0 Anima SGR 4.667 1.731 2.690 246 TOTAL 1.556.074 183.349 1.359.110 13.615

KILOMETRES TRAVELLED

Total Commercial banks, of which: 3,343,023 Banca Popolare di Milano 2 2,424,565 Banca di Legnano 342,000 Cassa di Risparmio di Alessandria 576,458 Afﬁ liates with specialist skills, of which: 935,507 Bipiemme Private Banking SIM 104,284 Banca Akros 783,333 Anima SGR 47,890 TOTAL 4,278,530

2 Including the ﬁ gures of WeBank.

276 GLOSSARY

ASSET MANAGEMENT: personalised management of major ﬁ nancial wealth.

BANKING: activities carried out in a banking environment.

BANKING CONFERENCE: a conference that has banking, credit and ﬁ nance as its main topic.

BANKING FORUM: a top management seminar among banks

BENCHMARK: a reference parameter for a measurement.

BIFUEL: cars that can use different types of fuel: petrol and LPG or petrol and natural gas.

BLACK LIST: a list of all countries offering preferential tax arrangements.

BROKER: a ﬁ rm that trades in securities and ﬁ nancial instruments (or, more broadly, in other assets) on behalf of clients.

BUSINESS (SEGMENTS OF): productive activity of a ﬁ rm (sector).

CALL CENTRE: telephone support for customers.

CASH IN/CASH OUT: devices available to bank tellers to speed up the process of paying out or taking in cash.

CHAT: real-time conversations between computer users.

COMMERCIAL BANKING: the normal banking activity carried on with individual and corporate customers; it does not include consultancy and special activities such as Corporate Finance, Capital Markets and M&A.

COMPLIANCE: compliance with norms, laws and regulations.

CONVENTION: a meeting of several individuals to discuss matters of common interest. In the business world, conventions are used to communicate to an internal public, dealers and commercial partners.

CORPORATE: a type of customer represented by medium-sized and large companies.

CORPORATE BANKING: banking activities addressed to medium and large size companies.

CORPORATE GOVERNANCE: a series of instruments and rules that govern company life, regarding in particular the transparency of documents, company deeds and the completeness of information given to the market.

CORPORATE IMAGE: a series of values and messages perceived and processed by the public in response to the company’s approach to aesthetics and relationship building.

277 COST TO INCOME RATIO: an indicator of productivity obtained by dividing operating costs by net interest and other banking income.

CROSS SELLING: a parameter indicating the number of products used by a customer.

CUSTOMER SATISFACTION: a measure of approval. This is the principal objective of a marketing-oriented business, whose efforts are designed to develop a quality relationship with customers.

DATABASE: a computer ﬁ le that is organised to allow applications software to manage the data stored in it (input, query, delete, update).

DEALER: an operator in ﬁ nancial markets.

EMISSION TRADING (EMISSION MARKET): an administrative tool used to control emissions of pollutants and greenhouse gases at an international level by putting a price on such emissions and trading in emission quotas between different nations.

FAIR VALUE: international accounting standards (IAS) deﬁ ne fair value as “the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’s length transaction”. In effect, it is a measurement at “market value”.

FEEDBACK: a return of information that helps you to learn.

HEDGE FUNDS: any fund that uses a strategy or a series of strategies other than just buying bonds and shares (like mutual funds) and credit instruments (like money market funds) and whose purpose is to achieve an absolute return, not one merely related to a benchmark.

FUND RAISING: gathering funds to ﬁ nance Third Sector (charitable) activities by means of donations and contributions offered by private individuals and companies.

COMPLIANCE FUNCTION: the unit responsible for preventing the risk that business activities fail to comply with legislation or other regulations, or with self-imposed instructions (e.g. articles of association, codes of conduct, codes of self-regulation).

HELP CENTRE: the place where information about the Bank’s products can be found.

SOCIAL HOUSING: a series of actions, initiatives and tools, provided directly or by facilitating the work of third parties, that help the disadvantaged live in a digniﬁ ed manner, in order to improve and consolidate their position in society.

INTERNAL AUDIT: independent checking and consultancy activities designed to improve organisational efﬁ ciency and effectiveness, via the assessment and development of processes involving controls, risk management and corporate governance.

278 INTERNAL DEALING: transactions (purchases, sales, subscriptions or exchanges) in the securities of a listed company by its directors, statutory auditors and senior managers (so-called “relevant persons”), as well as by shareholders with interests in excess of 10% of the share capital.

INVESTMENT BANKING: a specialist area of ﬁ nance dedicated, in particular, to giving advice on the issue of securities and, more in general, on sourcing funds in the capital markets.

INVESTOR RELATIONS: relations maintained by listed companies with institutional investors and rating agencies.

MANAGEMENT: the persons who direct a business or decide on its strategic direction.

MISSION: the overall orientation towards a company’s underlying macro objectives that reﬂ ect the reasons why a business exists. Consistent with the declared values, the mission statement usually links the activity of the business with its contribution to the community in terms of greater wellbeing, the quality of life and social integration.

MIXED ASSET FUNDS: funds that invest in various categories of ﬁ nancial instruments.

MOBILE BANKING: the term used to indicate transactions and payments made through a mobile device, such as a cellphone.

MONEY TRANSFER: a service that transfers money between two parties throughout the world and offered to the public through an international network of “agents” and “subagents” who undertake to receive sums of money from customers to transfer them to any country in the world.

NEWSLETTER: a letter with information on speciﬁ c arguments, which is sent by e-mail at regular intervals (daily, weekly or monthly) to all registered users.

NON-PROFIT: activities carried on not with a view to making a proﬁ t.

ON-LINE: everything related to telematic systems.

ON-LINE BANKING: a series of banking transactions carried out by banks’ customers through a remote connection with their own bank, made possible by the birth and development of the Internet and cellphone networks.

OUTLOOK: prospects for the future.

PARTNERSHIP: close collaboration between two or more organisations that share certain objectives and make their operational resources available in order to achieve them. Partnership facilitates dialogue and the exchange of ideas, which are vital for a proper assessment and management of risk.

PAY-OUT: the ratio of the total dividends paid to the net proﬁ t of the company.

279 PERFORMANCE: equivalent to yield in ﬁ nancial terminology.

PHISHING: illegal IT activity that takes advantage of social engineering techniques to obtain personal or conﬁ dential information via electronic communications, with a view to identity theft. These techniques include false e-mails, SMS messages and even telephone contacts.

PHONE BANKING: managing a current account by telephone.

POLICY: a series of fundamental principles and guidelines devised and implemented by the leadership of an organisation, with a view to directing its activities and pursuing long-term objectives.

POOL: an agreement between companies that operate in the same sector, or in complementary sectors, in order to limit competition.

PRICE SENSITIVE INFORMATION: information of a particular nature, not yet rendered public, directly or indirectly concerning the issuer or listed ﬁ nancial instruments issued by it and that, if rendered public, could have a signiﬁ cant impact on the price of these instruments.

PRICING: the methods of determining the yields and/or costs of the products and services offered by the bank.

PRIVATE BANKING CUSTOMERS: these are generally individual customers with ﬁ nancial assets over a certain threshold.

RATING: the assessment made by a specialist private agency of the creditworthiness of a party that issues bonds in international ﬁ nancial markets, i.e. a reﬂ ection of the probability that the party will be able to service the debt on a timely basis.

REAL ESTATE: structured ﬁ nancial transactions in the property sector.

SOCIAL RESPONSIBILITY: the strategies of a business that, together, increase its economic value while respecting the environment and considering the legitimate interests and needs of its stakeholders.

RETAIL: a term borrowed from high-street commerce to indicate the provision of a service or the sale of a product to the general public.

RISK MANAGEMENT: the corporate function that monitors a company’s exposure to risk.

ROAD SHOW: a series of initiatives that a company undertakes to divulge new corporate strategies, generally by means of itinerant meetings.

ROE: return on equity, being the ratio of net proﬁ t to shareholders’ equity at the end of the period.

280 SGR (SOCIETÀ DI GESTIONE DEL RISPARMIO): an asset management company that is authorised to promote, establish, organise and manage mutual funds (collective management of savings), while keeping its own assets separate from those of the fund. A SGR may also manage funds established by other SGRs.

SIM (SOCIETÀ DI INTERMEDIAZIONE MOBILIARE): a company that only provides stockbroking services.

SMALL BUSINESS: a market segment comprising small and medium-sized enterprises.

SOCIAL MEDIA: a category of websites that permit the user a high degree of interaction among members.

SOCIAL NETWORK: websites that make it possible to create a virtual social network, thereby facilitating the birth and maintenance of links with other people.

SPREAD: the difference between two interest rates, the gap between the bid (buy) and ask (sell) prices in securities trading or the higher amount that an issuer of securities is willing to pay in addition to the basic rate.

STAFF FUNCTION: functional specialists that support the hierarchical “line” structure of the business; the former are independent of the latter and assist them with their activities.

STAKEHOLDERS: all those that have an interest in a ﬁ rm and without whose support the organisation would cease to survive, including groups that do not have an economic tie with the business (Stanford Research Institute - 1963).

TARGET: an objective to be reached.

THIRD SECTOR: all the parties occupying an intermediate position between the public sector (First Sector) and the private sector (Second Sector) that are able to provide goods and services on a non-proﬁ t basis. In Italy, the Third Sector principally comprises voluntary organisations, social co-operatives, associations and foundations working for the beneﬁ t of society.

TIER 1 CAPITAL: the class of equity made up of the share capital and reserves coming from after-tax retained earnings.

TOP MANAGEMENT: the most senior executives of a company.

TOTAL CAPITAL RATIO: the minimum required solvency ratio, being the ratio of regulatory capital, including third-level subordinated loans, to the weighted on- and off- balance sheet assets of a bank.

TOUCH-SCREEN: a type of video terminal that makes it possible to carry out operations in a machine just by touching the surface of the screen with a ﬁ nger, thanks to sensors in the screen that are able to identify the point of contact.

281 TRADING: buying and selling various kinds of securities that are traded on ﬁ nancial markets. If this takes place on the Internet, it is called on-line trading.

TREND: the direction of a change in prices, indices or the results of an economic activity.

TURNOVER: when used with regard to employees, this means the percentage of new hires (inward turnover) and terminations (outward turnover) during the year.

VALUE ADDED: measures the increase in value created by the production and distribution of goods and services, achieved by combining capital and labour (as factors of production).

WARRANT: a derivative instrument that gives the owner of the security the right to buy (call) or sell (put) a certain ﬁ nancial or real asset within a certain time period and at certain conditions.

282 283 A COMMITMENT TO THE PLANET. BLACK ON WHITE. Banca Popolare di Milano demonstrates its commitment and support for ecology by using Shiro Alga Paper for this report. This natural product is unique in terms of innovation and environmental protection. It is made from excess algae removed from the Venice lagoon together with 50% FSC-certified cellulose from sustainable forests, where the processing of wood fully respects the ecosystem. This process helps to keep the lagoon’s water clean, while also replaced a substantial quantity of cellulose with a natural alternative.

Banca Popolare di Milano has chosen to

compensate the CO2 emissions caused by the publication of this report by contributing to forestation projects in Italy.

This report has been produced using FSC recycled ecological paper and eco-compatible vegetable inks from Agema Corporation S.p.A. – Milan, a company certiﬁ ed for eco-sustainable development.

284