Apulia. Baia delle Zagare
Social policy report of the BPM Group
This part of the Social Responsibility Report is dedicated to the stakeholders. It talks about the activities and synergies that our Group has developed with stakeholders during the past year, as well as projects designed to strengthen our relationship with them more and more in the future. Baia delle Zagare, located in the Gargano National Park, is an example of Apulia's beautiful and fascinating scenery. It contains a hotel which offers a breathtaking natural landscape. For us it is an honour that this hotel, which is renowned throughout the world, is a customer of the BPM Group. Lombardy. Cremona - The Arvedi Steelworks From left to right: an inside view of the Cremona area head office with frescoed ceilings, staff at work, and a factory near Cremona. Below: detail of the staircase and entrance to the courtyard of the headquarters of the Arvedi Steelworks.
52 Customers
Customers are fundamental for any enterprise operating in the market, as they are for us, a service company.
We have a solid customer base, but we are well aware that a relationship based on trust has to be built up day after day, fed with an adequate supply of products and services and with constant attention to the territory and its protagonists: Individuals, households, small or large corporates.
This attention implies knowing how to maintain the relations with our customers over time, it requires the ability to listen and meet their needs, a commitment to cultivate those values and to develop those skills that today allow us to respond effectively to their needs on a timely basis.
A way to make the bank more "sustainable", paying particular attention to the needs of all customers, including the segments of the population that up to now have been excluded from the banking system, and to promote ethical investment and respect for the environment.
Customers' expectations: listening The financial turmoil of recent years has made it even more necessary for banks to create new value models for their relationship with customers: clarity, transparency, sustainability and traceability have become key aspects of this relationship. Attention to the relationship and to communication is essential for an awareness of customers' expectations, their level of satisfaction and areas for improvement.
ID CARD (figures at the end of 2010) TOTAL NUMBER OF CUSTOMERS beyond 1.3 million Individuals 88.6% Resident in Milan and Province of Milan 41.0% Online customers 38.5% Foreigners 3.4% With ethical funds 0.3% Figures of Banca Popolare di Milano, Banca di Legnano, Cassa di Risparmio di Alessandria, Banca Popolare di Mantova, WeBank.
53 Lombardy. Mantua - Levoni SpA
Personnel Community
BPM Suppliers group BPM The BPM Group has for some time been running various activities to promote dialogue and Customer group
listening: from traditional methods, such as direct meetings, telephone surveys, complaint Member management, call centre and toll-free numbers, to more innovative methods, such as BPM4U and Shareholders and "The Bank I would like" introduced by Webank, an initiative to collect ideas and suggestions online Environment (see the table in the section "Online Services" for other listening initiatives).
Customer Satisfaction
! In line with the strategy of investing in the central role of customers, in 2010, for the sixth consecutive year, Figures and ratios: Customers we carried out a survey of customer satisfaction, also involving, for the first time, Banca Popolare di Mantova customers, new customers and customers that risk being lost. Overall, the 2010 results1, which relate to more than 7,000 customers contacted, are better than those of the banking system and represent a distinct improvement over the previous year, particularly in those segments that have suffered the most from the economic crisis: this aspect demonstrates the Group's commitment and proximity to local needs, especially in times of difficulty. The survey also revealed a higher level of customer satisfaction with regard to the professionalism, competence, understanding of customer needs on the part of the Group's employees, also thanks to continuous investment in staff training.
1 1 Unlike previous editions of the Social Responsibility Report, the graphs in this paragraph show the trend in the NIS indicator of satisfaction calculated as the difference between the percentage of most satisfied customers (which voted 8 to 10) and those with less satisfaction (from 1 to 5)
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54 2 3 24
Customer care and listening will continue to be important issues for the Group in 2011. Individual customer results (Group figures) The overall satisfaction of individual customers is rising for all Group banks. In particular, 54 the highest score in absolute terms is for employees, while the lowest is for current accounts, 51 though they have turned in the largest improvement over the previous year, above all for 45 BPM and Cassa di Risparmio di Alessandria.
Private banking customer results 2008 2009 2010 (BPM figures only)
48 44 Private banking customers show an overall level of satisfaction which is rising significantly 38 in all areas, in particular: the range of investment products, dedicated banking products, yield achieved and timeliness of communications received on investments.
2008 2009 2010
Small business customer results (Group figures) Small Business customers, while very different among themselves, show results almost in
48 line with the previous year and in any case better than the system average. The improvements 45 44 already recorded in 2009 by Cassa di Risparmio di Alessandria are continuing, which is gradually bringing it into line with BPM and Banca di Legnano.
SME customer results* 2008 2009 2010 (BPM figures only) 55 For Small and Medium Enterprises (SMEs), the quality of service is high in terms of contact management and frequency, with levels of satisfaction in line with the system for most of the topics analysed.
2010
* No data collected from previous editions as not comparable with those of 2010..
1,2,3,4. The Levoni family: since 1911 this firm, which is based in Castellucchio in the province of Mantua, is synonymous with tradition, authenticity and excellence in the field of salumi (cured meats). The Levoni family has never compromised on the quality of its products and this courageous decision has rewarded it by turning it into a well-known and much appreciated brand all over the world. Levoni has been a customer of Banca Popolare di Mantova for the last 10 years
55 Emilia Romagna. Bologna - Ca' la Ghironda
Handling of complaints
We encourage the development of a corporate culture founded on adequate assistance and information for customers, also in the area of complaints and reports, as a means of self-protection for the customer.
Seeking the highest possible quality in delivering services to customers and effective management of operational errors and problems that may be generated in business processes are prerequisites for improving customer relationships and reducing the number of complaints. In this regard, we believe that greater attention to listening in the traditional locations where financial advice is given and products and services are offered may be an essential element to improve customer relationships.
2010 marked an important milestone in the field of banking complaints: the evolution in the rules concerning the relationship with customers has seen the coming into force of the new transparency provisions of the Bank of Italy, which have imposed the adoption of formal procedures on how to handle, monitor and publish complaints, as well as appropriate organisational measures to ensure fairness and transparency at every stage of intermediation in customer relationships.
! Figures and ratios: Customers In general, 2010 was characterised by an 8.5% decrease in complaints, which mainly concerned the Credit & Loans and Savings areas; Current Accounts & Services remained stable, whereas the Other Complaints area went up.
Within individual sectors, complaints depend more on micro-organisational aspects (delays, dysfunctions, slow execution and decision-making) or commercial aspects (non-acceptance of requests, complaints about accounting entries, application of terms and conditions, fees and expenses); there has been an increase in complaints about organisational and interpersonal matters.
Trend in complaints by sector
3500 1
3000 2009
2500 2010
2000
1500
1000
500
0 Total Service Credit Savings Other & Loans
1. Centrale del latte di Alessandria e Asti: this is a company that for more than sixty years has provided high-quality fresh dairy products from milk that comes solely from local farms. In so doing, it plays an important role in the local economy. It has been with us since 1984.
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Compared with the previous year, there has been a decrease in the ratio between complaints processed/incoming complaints and those that have had a positive outcome for the customer; the average time needed to resolve complaints is improving.
2010 2009 Complaints processed/incoming complaints 92% 99% Complaints processed with a positive outcome for the customer 32% 36% Average resolution time 16.2 days 18 days
Lastly, BPM's participation in ABI - RECLARA, an interbank working group for monitoring and processing complaints in the banking system.
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4
LISTENING TO CUSTOMERS AT BANCA AKROS: A stable group of bankers, the lean structure and a deep-rooted culture of teamwork, as well as a steady stream of information that ensures maximum transparency, have enabled Banca Akros to create strong relationships with its clients. Confirmation of this comes from the fact that the level of customer retention has remained high even in these years of particularly difficult markets. The bankers meet with their clients on average once every two months; with a group of about 200 clients, a weekly basis is achieved.
2. CA' la Ghironda: is located in Ponte Ronca di Zola Predosa, in the province of Bologna. It consists of an outdoor sculpture park, a botanical garden with more than 25,000 plants, an exhibition space, a conference centre, a place for exhibitions and laboratory artistic activities with spaces dedicated to schools, families and children. It has been a customer of BPM since 1997 3. Detail of the inner hall which is also used for art exhibitions 4. A detail of the amphitheatre in the park CÀ la Ghironda
57 Apulia. Bari - The Casillo Group (Food)
Innovative channels for listening
Through Webank, we are developing a number of innovative listening activities based on the concept of Real Time Search and Idea Generation Platform. The use of special free tools offered by the internet makes it possible to monitor daily blog and microblogging, forums and aggregators, in order to detect in real-time suggestions and comments from both our customers and from other Internet users and to decide on a contact strategy that may be public (e.g. publication of a post) or private (e.g. phone call).
Through "The bank I would like" we have also collected some ideas and proposals for products and features that, if feasible, will be implemented by Webank.
One of the new means of acquiring private customers adopted by the Group is BPM4U, a web platform dedicated to employees of client companies that combines traditional contact methods with innovative tools.
FROM LISTENING TO PARTICIPATION: "THE BANK I WOULD LIKE" BY WEBANK From listening ... Internet users seek, as far as possible, disinterested advice on the quality of a commercial service. They do so trusting the opinions of their “peers“, comparing the various products in a given market and the level of service offered. In the case of an online bank, which bases its raison d'etre on the relationship of trust with its customers on the internet, these methods of interaction become crucial. In fact, both the methods of listening and communicating with its customers change: from one-way (the company speaks, customers listen) to two-way (the bank speaks and listens, as does the customer), as well as in a network (customers talk to other customers). … to participation “The bank I would like“ is the initiative that from January 2010 collects ideas and suggestions on Webank's products and services. Participation is open to customers and non-customers: everyone can contribute by making proposals, or simply, by voting for the most interesting ideas. If feasible, proposals are included in corporate projects: the user receives timely communication on the progress of the idea and, in the event of implementation, an e-mail is sent to the author of the idea together with a public announcement in Webank's Multimedia News section.
A project of this kind highlights the revolution started more than ten years ago by the advent of online banking, which wants the customer as part of the bank not only on the operating, but also involved in improving its products and services. Thanks to the potential of Web 2.0, users do in fact have a genuinely "creActive" role in the company, which has to be prepared and properly structured to gather suggestions and turn them into concrete projects.
BPM4U This is a web platform dedicated to employees of client companies of the Group which provides access to banking services on favourable terms with respect to the market: in fact BPM4U promotes the supply of banking services designed specifically for corporate employees and facilitates their interaction with BPM. In each client company, the initiative is completed by a "BPM Point", or by the physical presence of a financial advisor planned according to the company's own timing and pace of work. This adds value to the relationship, which helps satisfy the need for discussion on specific individual situations and to assist employees in the selection of products and channels closer to their expectations. The central role of the relationship is the real peculiarity of BPM4U, whose mechanism allows customers to express their expectations and needs and the Bank to meet the growing complexity of the retail market for individuals. With BPM4U the Group confirms its commitment to offer a response to customers' requests by means of dialogue and listening.
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Transparency Transparency, trust and fairness are the values underlying the relationship with our customers.
In this context, the Group continued its commitment to the initiatives promoted by the PattiChiari Consortium, both by getting involved in such initiatives and by forming part of the restricted group of banks that will ensure their implementation. In 2010, having completed the planning phase of the "Commitment to Quality" project with the start-up of the Automated Securities Dossier Transfer service, the Consortium launched a rationalisation process designed to bring together and redefine individual initiatives to make them as transparent and clear as possible for customers. Since last September, with the inclusion of Banca Popolare di Mantova, all of the Group's regional banks have been taking part in the initiatives promoted by the Consortium.
During the past year, also in accordance with the provisions of the Bank of Italy, we have implemented the following initiatives with the objective of ensuring maximum transparency for our customers: the creation of an area dedicated to transparency on all websites of all Group banks, a remake of the documentation according to a logic of greater completeness, comprehensibility and readability, progressive enlargement of the European Payment Systems Directive (PSD) for standing orders, bank transfers and charge cards, which established operating methods to provide customers with better protection.
As part of the consumer credit business launched by ProFamily, a new Group company, at the beginning of 2011 an exclusive agreement was stipulated with Adiconsum, one of Italy's most important consumer associations. This agreement provides for an assessment of compliance by ProFamily's contractual standards with the various regulations that protect the rights of consumers and users of financial services.
1. Casillo Group: thanks to its role as the largest private user of durum wheat in the world, it is one of the principal global market makers of wheat and milled products (bran and flour) obtained from wheat. The Group is located in Corato Casillo in the province of Bari and has been a customer of BPM since 2007.
2. Alidaunia: this is the only company in Italy that operates scheduled flights by helicopter. It is based in Apulia. It provides a complete air navigation service: public transport for passengers and cargo, humanitarian emergency/rescue flights, aerial work in its many applications. It is also a Certified Maintenance Company. It has been our customer since the '80s.
59 Emilia Romagna. Bologna - Inver SpA
Products and services Facing crisis situations
In line with our mission as a Group that is attentive to the needs of the territory, again in 2010, a period of severe financial and economic crisis, we have confirmed our continued commitment to support individuals, households and small and medium-sized businesses. We have been close to more than 2,600 families and about 3,500 companies in difficulty due to the economic crisis through a number of initiatives carried out in collaboration with institutions. We will only mention the main ones here.
Initiatives for individuals and households
Suspension of mortgage instalments Special initiatives for the suspension of mortgage repayments for a period of between 12 and 18 months. These include the Family Plan (an agreement signed by ABI, the Presidency of the Council of Ministers, the Ministry of Labour and Social Policy, ANCI, the Conference of Autonomous Regions and Provinces, the CEI and consumer associations), the Gasparrini Fund or Solidarity Fund promoted by the government and the measure of suspension provided for in the Protocol of Intent related to the Tremonti Bonds. Hope Loan Funding in favour of needy families, with at least two children or a disabled person, who have lost their source of income and take part in a project of re-employment or business start-up. The initiative was launched in 2009 thanks to an agreement between ABI and the CEI. New-born Babies An initiative promoted by the Department for Family Policies of the Presidency of the Council of Ministers aimed at facilitating access to credit for families with a new-born baby or adopted child in the three years from 2009 to 2011. Advances on state redundancy benefits (CIGS) An initiative already begun in 2009 in favour of employees of companies throughout Italy.
2010 2009 No. beneficiaries 762 243 Suspension of mortgage repayments Amount suspended 8 mn euro 2.4 mn euro No. beneficiaries 7 - Hope Loan Amounts financed 40 thousand euro - No. beneficiaries 1.195 - New-born Babies Amounts financed 5.9 mn euro - No. beneficiaries 668 467 State redundancy benefits 2.6 mn euro 2.1 mn euro
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The Group also entered into agreements with local organisations and institutions so as to strengthen possible synergies and enhance our reputation as a Group that stays close to the local community. In particular, BPM has signed a special agreement with the Province of Milan, Banca di Legnano with the Chamber of Commerce of Milan, Varese and Como, and Cassa di Risparmio di Alessandria with the Province of Alessandria and Fondazione Cassa di Risparmio di Alessandria.
Initiatives in favour of companies
Capital reinforcement An initiative promoted in 2010 by ABI and the Economy and Finance Ministry in support of companies with less than 250 employees that go through a process of capital strengthening or boosting liquidity as a result of an increase in capital.
Moratorium for SMEs Agreement promoted by ABI, the Ministry of Economy and Finance and Business Associations for the suspension of debt repayments on the part of SMEs in financial difficulty for up to 12 months.
2010 2009 No. beneficiaries 5 - Capital strengthening Amounts financed 1.6 mn euro - No. beneficiaries 3,462 1,446 Moratorium for SMEs Amount suspended 25 mn euro 10.6 mn euro
Individual banks have also developed specific initiatives with local institutions to support local companies in crisis.
Cassa di Risparmio di Alessandria has signed such an agreement with the Province of Alessandria and a number of municipalities in favour of suppliers of public entities and other agreements with the Collegio Costruttori, Api Alessandria, Ascom, Confindustria and Cassa Edile for the financing of member companies.
Banca Popolare di Mantova has collaborated with Fiditer Mantova, the guarantee consortium for lending to the services sector, to support those SMEs which are in a business situation that makes it difficult for them to obtain access to credit through normal channels.
OTHER CRISIS SITUATIONS: FLOOD EMERGENCY IN VENETO After the flood that hit a large part of the Veneto last autumn, BPM took a number of steps on behalf of individuals, households and businesses to help relaunch the area: namely, a 12-month moratorium on outstanding mortgages and loans and a 50 million euro fund to finance the restoration of homes or businesses.
1. Inver SpA: it is a landmark in the world of industrial paints. It has numerous locations around the world and is one of BPM's longest-standing customers
61 Trentino - Leitner Technologies
Promoting environmentally sustainable lifestyles
In line with the growing emphasis on the environment and as a result of several initiatives, the Group's catalogue has been enriched in recent years with products intended to support the environmental decisions of its retail and corporate customers. For detailed information on products, reference should be made to the paragraph on Green Finance in the Environmental Report.
Support for the disadvantaged
In line with the tradition of a Group sensitive to social issues, we have continued our commitment to developing products and services with the aim of facilitating access to credit for the weakest categories. The main ones are as follows:
Immigrants Immigrant customers are served through a dedicated line of bank accounts and services: the Conto Extraordinario, an exclusive line of products specifically for foreigners, and Servizio Bancario di Base, a line dedicated to those who are entering the world of banking for the first time. These services have been promoted in collaboration with representatives of various foreign communities, as well as through the Group's branch network.
The remittance service has been further implemented through direct agreements with foreign banks and through the Western Union Service, accessible through the network of agencies, which in 2010 had a substantial increase in transactions (+29%) and volumes (+18%) over the previous year. For our continuous commitment to the economic integration of migrants (Welcome Bank Observatory), the jury of the Welcome Awards 2010 described the Group's activities as "meritorious".
In 2010, Banca Popolare di Milano promoted the “Clienti&Vincenti“ competition as an additional 1navigatori00 satellitari in palio! incentive for this customer segment to use banking services. The competition encouraged customers to introduce a friend or relative to BPM to open a "Conto Extraordinario" current account, which entitled them to take part in a prize draw along with other new customers.
10_180_2FLY_CARTOL_15X10.indd 1 29/06/11 13.59 Young People The Group has a number of projects in favour of young people, especially during this difficult period for the economy.
dire. fare. popolare. edizione luglio ‘08 Diamogli Credito aiuta gli studenti che studiano. “Diamogli Credito“ is a loan designed for undergraduate students between the ages of 18 and 35 to finance
Diamogli Credito nasce per aiutare gli studenti universitari e post-universitari a sostenere le spese di formazione o collegate allo studio. È un’iniziativa realizzata grazie ad un accordo training, for which no specific guarantees are required apart from a good exam record. tra l’Associazione Bancaria Italiana e il Ministero per le Politiche Informati qui. Giovanili. Così, se stai pensando, ad esempio, ad Erasmus o a un nuovo PC, ottenere un finanziamento diventa più semplice e veloce: la banca Ecco dove rivolgersi per conoscere tutti i dettagli: dire. fare. non ti chiederà alcuna garanzia, ma solo meriti di studio. www.diamoglicredito.it Averli dipende solo da te. Quali sono i meriti minimi previsti? www.bpm.it laureare. • 80% del punteggio massimo di diploma per gli iscritti al primo anno Agenzie Banca Popolare di Milano • 2/3 dei crediti dell’anno precedente con almeno 24/30 di media Diamogli Credito: per gli iscritti agli anni successivi Risponde BPM 800 100 200 il finanziamento To facilitate students' access to credit on favourable terms, there are also agreements with various universities • 90% del punteggio massimo di laurea per i laureati. per chi studia.
BPM aderisce all’iniziativa Diamogli Credito, in Milan (Bocconi University, Milan Polytechnic and NABA - New Academy of Fine Arts in Milan). realizzata mediante un accordo tra il Governo e l’Associazione Bancaria Italiana (ABI)
Prendere visione delle condizioni economiche mediante i Fogli Informativi disponibili presso ogni agenzia (Lgs. 385/93). Il presente messaggio ha finalità esclusivamente promozionali. L’erogazione dei finanziamenti è subordinata alla consueta In 2011, we plan to launch “Diritto al Futuro“, a series of services developed in collaboration with the Ministry istruttoria e alla disponibilità del fondo ministeriale. Esempio: importo 6.000 euro - rimborso in 36 mesi – ISC (indicatore sintetico di costo) 5,640%. Per il conto corrente riservato a Diamogli Credito è previsto il solo addebito dell’imposta di bollo secondo le disposizioni vigenti. www.bpm.it Popolare è la firma, il sorriso è per voi. of Youth addressed to the younger generation on labour, housing, training and self-employment issues.
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The Third Sector Non-profit organisations are also included among the categories of the "weak" who were affected particularly badly by the economic crisis: voluntary associations, social cooperatives, NGOs, religious bodies, etc. For years, the BPM Group has supported such entities not only through donations and sponsorships (for details, please refer to the Community section), but also with a dedicated multi-purpose commercial service called Faresolidale, which is designed to inform, give visibility and facilitate meetings between those involved in solidarity initiatives.
Victims of usury In 2010 we continued with initiatives to prevent usury. In addition to the agreements signed with major guarantee consortiums with which dedicated lines have been studied for the prevention of usury, we have entered into agreements with other local or provincial entities (Fondazione Buon Samaritano in Foggia and Ambulatorio Antiusura Onlus, Adiconsum Fondo Prevenzione Usura, Fondazione Adventum Onlus and Fondazione Wanda Vecchi Onlus in Rome).
Other interventions In the first quarter of 2010 BPM entered into a Protocol of Intent with the Municipality of Milan to support youth and female employment and entrepreneurship in small enterprises. Of the 100 million euro allocated, around 2 million euro were requested by more than 40 businesses. Lastly, in October 2010 we launched "Millecooperative", an initiative developed in collaboration with Cooperfidi which provides credit to cooperative start-ups throughout Italy.
Socially responsible investment products
Number of Group customers with ethical funds We continued our efforts to disseminate "Valori Responsabili", the ethical investment funds of Etica SGR, which again turned in good results in 2010. 4,736 As confirmation of this, two of Etica SGR's funds have received prestigious awards: "High Return" from Sole 24 Ore, as the "Best International
3,232 Geographical Equity Fund" and the "Best Italian Balanced Fund", and Lipper awards for the best yield after three and five years. 2,411 2,293 To raise the awareness of customers and the general public about this form of investment, in 2010 we organised some interesting events in Rome and Milan in collaboration with Etica SGR: participation in ABI's CSR Forum as a partner of the event, involvement of the network in the Socially Responsible Saving initiative and the organisation of a conference entitled "The responsibility of
2007 2008 2009 2010 investors beyond ideology: comparative experiences" held at BPM's head office.
1. Leitner Technologies: based in Trentino, it has been synonymous with high performance in the field of technology for the last 120 years. Leitner produces cable cars and plants for winter sports with modern and attractive solutions. This company's products are more and more in demand, even in cities, where they offer a sustainable passenger transportation system. Leitner has been a customer since 2009.
63 Emilia Romagna. Bologna. Paolo Atti & Figli
Contribution of the BPM Group to total assets managed by Etica SGR
18.5% Growing interest in this type of investment was registered at all Group banks during 2010. This is demonstrated by the fact that at year end Group customers who had subscribed to ethical funds had increased by almost 50% 18.0% and assets by about 43%. 17.8%
17.4%
2007 2008 2009 2010
Services online
In 2010 Webank consolidated its position as an online bank with a complete, state-of-the-art service in this segment, strengthening the Group's presence in online banking. With the merger between Webank and WeTrade SIM, in December 2010, we ! strengthened our online banking offer, including services in the trading and investment area. Figures and ratios: Customers Mobile banking services are provided by m-site and Android/iPad applications; the number of active customers per month increased from 350 at the end of 2009 to 2,700 at the end of 2010.
We also offer our customers a number of support channels, including: Customer Service: toll-free phone number to provide surfing and operational assistance in account, savings and investment management. Virtual assistant: support software for customers using the site, accompanying them to the pages that they are interested in and providing general information on deadlines and how to use the products. Chat Help Centre: a simple, fast and accessible means of contact that allows customers to interact online and in real time with operators to get technical support, surfing assistance and information about their personal position. Call me back: a contact channel with telephone appointments set by the site indicating the time slot for the return call.
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Operating in controversial markets As part of operations in the field of import, export and transit of military goods in accordance with Law 185/90, during 2010 we received about Trend in technical operations (in millions of euro) 83 thousand Euro not subject to prior authorisation for a programme of 57.9 intergovernmental co-production of armaments for the EFA (Eurofighter).
43.6 In compliance with the Group current policy of a gradual withdrawal from the arms market, except for operations falling under Law 185/90 and deemed consistent with the spirit of an "unarmed bank"1, in 2010 no new dossier was opened subject to prior authorisation nor were any funds received for 18.2 operations already authorised in previous years. 4.9 6.2 0.0 0.0 As part of the process of revising our policy on arms with a view to adopting 2004 2005 2006 2007 2008 2009 2010 new guidelines to evaluate individual transactions according to their real significance in terms of social responsibility and not according to their bureaucratic aspects, we held discussions with Banca Etica in order to benefit from their input.
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1 The concept of a bank that works with selective and restrictive criteria in terms of the types of arms that can be exported and the countries that the arms are being sent to.
1, 2. Paolo Atti & Figli: Paolo Atti & Figli has been producing bread and sweet and savoury treats for gourmets in Bologna and beyond since 1880. Over the years the business has grown, without losing the original philosophy based on quality and research for the best possible product. The Atti firm, which has been admitted to the prestigious Associazione dei Locali Storici d'Italia (Association of Historical Places of Italy), has been a customer since 1960.
65 Lombardy - Milan, Bracco SpA
Security and privacy We monitor the various aspects of security and privacy on the basis of regulatory obligations that require coordinated and effective action; to this end, we carry out the various activities related to security (physical, IT, archive and product security), privacy and business continuity, ensuring synergies and common goals. On these issues, we organise specific training sessions for all staff involved and participate in external working groups mainly promoted by ABI, including the Observatory on Secure Identity Management in Banks and the Cyber Attack Warning Centre.
Physical security: a for the security of our customers and staff working in our branches, we adopt a combination of measures to strengthen control systems to reduce the risk of robbery: video surveillance systems, biometric recognition systems through the collection of fingerprints, installation of Cash In Cash Out devices which simplify teller duties and reduce the risks involved in handling banknotes, and agreements with police headquarters (see the Health and Safety section of the chapter on Personnel). At the end of 2010, 219 BPM and Banca di Legnano branches were equipped with biometric recognition systems, 18 more than the previous year. Robberies suffered by the Group's commercial banks during the year came to 49, a decrease of 14%.
IT security: in the field of online services, we have moved with the objective of improving security systems to prevent fraud. Among the activities that respond to the first goal, there are: • expansion of the initiatives under the Security Programme launched in 2008, which focuses primarily on the information given to customers and additional alert mechanisms (new SMS, email control); • improved tools to support the Group's "Rapid Security Intervention", established in 2009, which deals with the monitoring and management of suspicious situations; • the evolution of digital signatures for business customers. The prevention of computer fraud, which mainly involved Webank, has become a strong educational role in the use of social networks and information technology through a careful and ethical direct presence on the new platforms and with a continuous provision of information to customers. Specifically, Webank introduced mechanisms to identify suspected false identities and has promoted training activities related to the identification of false documents for those working in credit and loans. This commitment, combined with the development of prevention and risk reduction tools and continuous monitoring, has led to significant results for the entire Group, with a number of frauds per active customer that is below average for the banking system (0.001 according to internal data in 2010 compared with 0.013 calculated by ABI in 2009).
Card security: in this area, we continued to protect ourselves against fraud with the promotion of services designed to increase the security of online shopping.
Product security: in 2010 we proposed to holders of policies sold by the Group's networks with underlying Icelandic securities to transform them into new products with guaranteed benefits from BPM Vita. The transformation, which was designed to avoid customers incurring losses, ended with great success (99% participation), resulting in a 55 million euro charge for the Group.
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Business continuity: in line with the requirements of the Bank of Italy, since 2006 we have a specific plan to ensure business continuity and protect critical operations in the event of an emergency or disaster. In 2010, several trial runs were held at all Group banks to assess the effectiveness and efficiency of the plan in the event of an emergency or outage. Based on the results of these tests, we identified improvements to be made in future projects. Activities have also been initiated to ensure business continuity in the Finance Department's main procedures.
Privacy: we are convinced that personal data should be protected, quite apart from what the law says. For this reason, we try to create "islands", also in the branches, where customers and bank staff can talk in peace and in the strictest confidence. On our Internet sites, we provide all updates on the processing of personal data and the rights that the law gives our customers.
Corporate Image
Communication by the Group and by the individual banks has helped to increase market awareness of certain aspects of our corporate identity, the intention being to improve the perception of what we offer and of our ability to meet the needs of different customer segments in the long and short term. “Being in the green (the Italian equivalent of being in the red) with us is a value. For a better environment”: this is an ironic statement, but one that is strong and decisive. We used it for the advertising campaign in which the various banks in the BPM Group revealed their “green soul“.
Cassa di Risparmio di Alessandria, continued down the path begun in 2009 by relaunching its brand as the bank of reference for the territory, lending its image to various projects by trade associations or local institutions.
WeBank adopted an innovative and engaging metaphor to describe the characteristics of the product offered through the image of an animal that is half cow (an animal that produces) and half cheetah (an animal that runs fast), representing the Bank's efficiency: "Webank, the bank that produces fast" is in fact the claim of the TV spot and the web campaign. With ironic and familiar language, Webank has approached a wider audience, trying to overcome traditional resistance to the world of banking. In 2011, efficiency and performance become key points to convey the image of a bank which offers a vast range of services.
ProFamily has been trying to create a revolutionary brand in the financial sector capable of expressing the values of the Company: authenticity, tranquillity, reliability and proximity. They came up with the “Chicken Heart“, graphically a combination of a small chicken and a heart, which won first prize as “Brand of the Year 2010“ in the Logo Design section of the Brand Identity Grand Prix.
1. Bracco: this pharmaceutical group, founded in 1927, is a landmark in the medical sector, thanks to its continuous research to improve the quality of life. Bracco SpA is one of BPM's long-standing customers
67 Milan, 2010 General Meeting of Members Photo: "BPM's Geodesic Dome", the symbol of BPM's commitment to the environment, built during the 2010 Annual General Meeting at Fieramilanocity. 1
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 strive to maintain and develop the traditional relationship of trust and transparency that we have always established through effective and constant communication and involvement, while also enhancing the profile and mutual exchange that characterises this relationship.
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 continue 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. BPM's share Capital
Share capital structure
BPM's share capital is made up of registered shares that cannot be split. The ownership of shares gives shareholders exclusively capital rights, such as dividend and option rights. BPM shareholders acquire the status of "Member" and the related rights of participation in the corporate life of the Bank only once they have obtained approval and inclusion in the Members' Register according to the law and the Articles of Association.
ID CARD (figures at the end of 2010) SHAREHOLDERS SHARES OWNED TOTAL NUMBER 97,099 415,055,195 Members 53.6% 28.2% BPM's Customers 41.6% 16.1% Individuals 97.9% 42.2% Resident in Milan and Province 44.1% 26.1% of Milan Foreign institutional investors 0.2% 32.3%
69 Personnel Community
BPM Suppliers group BPM ! At the end of 2010, BPM had more than 97,000 shareholders, Customer group Figures and ratios: Members and Shareholders
a slight increase over the previous year (+0.4%), split into Member more than 52,000 members and 45,000 shareholders who and Shareholders are not members. Environment
The composition of BPM's shareholder base reflects its status as a listed co-operative bank. In fact, the Bank's share capital includes: a large number of individual shareholders (97.9%), confirming the importance of participation on the part of the individual and mutualistic relationship between members, these being the principles that have always inspired the cooperative banking movement; large presence of employees and customers, most of whom are members; concentration in the areas where the Bank has opened branches, especially as regards members. There tends to be a higher proportion of shareholders who are not members in the other regions and abroad; a high level of fragmentation as a consequence of the rule that limits share ownership to 0.50%, excluding Undertakings for Collective Investment in Transferable Securities (UCITS).
Composition of the share capital (% held) In recent years we have consolidated the presence of institutional investors (approximately 42% of the share capital), Institutional investors1 41.7% evidence that the more qualified financial Other shareholders 44.9% professionals are interested in the Bank. Within this category, although if foreign investors are fewer in number than in 2009, their weight has become significant in terms of share capital. ! Figures and ratios: Members and Shareholders
Among the shareholders with more than one hundred thousand shares, which together represent 55.07% of the share capital, there Partner shareholders2 5.5% Large shareholders1 7.9% are still the two strategic partners Fondazione Cassa di Risparmio di Alessandria and Crédit Mutuel (CM-CIC) with 5.5%.
1 Institutional Investors and Large Shareholders with 100 thousand shares or more. Institutional Investors include Qualified Operators and Undertakings for Collective Investment in Transferable Securities (UCITS) 2 Partner shareholders: 4.9% CM-CIC Group, 0.50% Fondazione Cassa Risparmio di Alessandria
70 1
Limits on share ownership
The rule in the banking sector (art. 30 of the Consolidated Banking Act), which is reflected in art. 21 of our Articles of Association provides that no one can hold shares in excess of 0.50% of the share capital. This limit does not apply to mutual investment funds; the relevant limits in such cases are those imposed by the rules of the fund concerned.
In 2010, in line with this provision: BPM contested 23 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 2010 Number of shares % held GRUPPO CM-CIC 20,710,208 4.990 SOCIéTé GéNéRALE 17,859,528 4.303 NORGES BANK 9,132,945 2.200 UBI PRAMERICA SGR SpA 8,518,451 2.052 DIMENSIONAL FUND ADVISORS 8,309,133 2.002
Terms of admission to membership and exclusion
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.
The application of the law which refers to the method of admission and exclusion of members (art. 2528 Italian Civil Code and arts. 11 and 16 of the Articles of Association), as well as management of the relationship with them, are governed by a framework resolution that provides for the creation of a Members' Relations Commission, which is vested with powers of investigation for admission and exclusion of members and all other powers specified in the Resolution. This Commission also plays a particularly important role in the relationship with members by studying, planning and proposing initiatives dedicated to them and to support the mutualistic spirit.
During 2010 the Members' Commission developed a series of amendments to the Framework Resolution to promote expansion of the membership base and increase participation; these amendments were approved by the Board of Directors in January 2011. Specifically, these amendments concerned the procedures for admission to membership, making it easier in particular for shareholders who do not have their shares on deposit at BPM (possibility to submit the Application Form through third party representatives or to send it in by registered mail).
1. Ale & Franz and Friends: March 2010. First event organised by the BPM Club Members : a charity evening exclusively for BPM members at the Auditorium of Milan, with the participation of artists from the cabaret programme “Zelig“
71 After the significant increase in applications for ! Trend of members and % of total shareholders admission as a registered member at the beginning Figures and ratios: Members and Shareholders
52,082 of 2009, also with a view to taking part in the General Meeting of Members for renewal of the corporate bodies, in 2010 the positive trend decreased, albeit with
50,823 a better trend than in previous years. It then increased again towards the end of the year which closed with the admission of more than 2,400 new members. The renewed positive trend was stimulated by the various initiatives proposed by 53.6% the BPM Club Members and by training and awareness activities aimed at the 48,219 52.6% commercial network.
51.9% The results of the first few months of 2011 confirm this trend, favoured by simplification of application procedures and by the ongoing programme of 2008 2009 2010 training of the commercial network. The decline in membership concerned about 1,200 people, most of them because they no longer owned shares. Thirteen were readmitted as their minimum shareholding was ascertained after the resolution to exclude them in January 2010.
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 cooperative bank and in accordance with its mission, BPM combines the features of a cooperative company - focus on interpersonal relationships, mutual aid to the membership (internal mutuality) and the reference area (external mutuality) - with those of a listed company - attention to the rules of the market, efficiency and profitability.
The high level of economic uncertainty that continued in 2010 weighed negatively on stock markets across Europe and, in particular, on the shares of the banking sector. In the wake of this trend the Italian banking index (FTSE All Share Italian Banks) showed a negative change of 11.5%. Specifically, the BPM stock has fallen by 47%, fluctuating between a high of 5.57 euro (15 January 2010) and a low of 2.64 euro (30 December 2010), with average daily volumes of 4.7 million shares being traded. At the end of 2010 the stock was at its lowest point for the year, giving a market capitalisation of more than 1 billion euro.
2010 2009 2008 No. shares in circulation 415,055,195 415,034,231 415,034,231 Closing price for the year (euro) 2.637 4.978 4.182 High for the year (euro) 5.568 5.818 9.094 Low for the year (euro) 2.637 2.770 3.780 Market cap. at year-end (in millions of euro) 1.094 2.066 1.736
72 1
Performance of the BPM stock in 2010
BPM FTSE Italia All share banks 6.000 BPM volumes 35,000
30,000 5.000 es) 25,000 4.000 o) 20,000 3.000 15,000 erformance (eur aded (thousands of shar
P 2.000 10,000
1.000 olumes tr
5,000 V
0.000 0,000 0 0 0 0 0 0 0 0 0 9 10 10 01 01 01 01 01 01 01 01 01 00 20 20 /2 1/ 9/2 8/2 6/2 4/2 /11/ /07 /05/2 /03/2 /1 2/2 /0 1/1 0/2 0/0 8/02/2 0/0 0/0 0/0 3 31 30 31 31 31 3 2 30 3 3 3
Despite these hard times for the economy, the worst crisis in the last 60 years, our Group still managed to close 2010 with satisfactory results, posting a consolidated net income of 106 million euro, +2.3% on 2009. The Board of Directors has therefore decided to propose a dividend of Euro 0.10 per share, the same as in the last two years.
2010 2009 2008 Shareholders' equity (thousands of euro)* 3,737,196 3,788,851 3,177,278 Net income for the year (thousands of euro) 105,970 103,553 75,269 Dividends resolved (thousands of euro) 41,455 41,504 41,503 Earnings per share (Euro) 0.178 0.201 0.180 Price/Earnings (P/E) 21.65 22.48 36.58 Dividends per share 0.10 0.10 0.10 Yield per share (compared with the average share price) 2.59% 2.21% 1.52% Equity per share (excluding net income) (Euro) 9.004 9.13 7. 6 6 Price/Book Value (P/BV) 0.43 0.50 0.86
* The 2009 and 2010 figures include the amount of the “Tremonti Bonds” and the equity element of the “Convertendo” bond
1. General Meeting of BPM Members: view of the area of the pavilion at Fieramilanocity set aside for BPM's Members Club. This area was split into three sections dedicated to the members (Banking, Non-banking and "Counting on you"), highlighting all of the benefits reserved for them
73 Communication with members, shareholders and the financial community
We communicate with members, all other shareholders and the financial community, drawing on principles of correctness, clarity, continuity and timeliness, making use of many different tools: the financial and social report, the letter sent to members and shareholders at the time of the Members' Meetings, dedicated structures (External Relations, Investor Relations, Relations with Members) and online channels (websites and e-mail boxes). The financial community Contacts with institutional investors and financial analysts We attribute strategic importance to financial communication as a key way of building a relationship 819 of trust with the financial market. Through the Investor Relations function, we maintain an ongoing dialogue with analysts, institutional 802 investors and rating agencies, promoting clear, timely and accurate communication, with the aim of
791 fostering a proper valuation for our business. For this, we use the most common tools of financial reporting: conference calls for the presentation of financial results, meetings with small groups and individual analysts and investors, road shows on the main European and American financial marketplaces, daily contacts, as well as our website. Contacts with the financial community during the year came to more than 800 in total, up on 2009, in most cases also involving top management. 2008 2009 2010
To improve communication with the financial community in terms of transparency and timeliness, in early 2011 we ! organised for the first time a meeting between top management and financial analysts who cover the BPM stock. Figures and ratios: Members and Shareholders The analysts have shown their appreciation of our commitment to direct communication in an open meeting where questions and opinions can be exchanged. The excellent Opinions expressed by analysts feedback has convinced us that it is worth repeating this event during the current year. 47% 50% 50% Hold The interest in the Group is confirmed by the higher number of analysts who regularly conduct studies and research on BPM Sell (22 at the end of 2010). In the previous year, their assessment of the stock was affected by the difficult economic situation 29% Add 27% that led to a reduction in the average target price from 5.72 24% 25% 25% 23% euro in 2009 to 3.83 euro in 2010. However, expectations of a recovery in the share value increased, justified by an improvement in the opinions expressed, which compared with 2009 included more "add" recommendations.
2008 2009 2010
74 1
Rating
For a better assessment of the trend in our performance, we are subjected each year to the opinion of independent analysts. This helps us understand our position compared with competitors and identify possible improvements. The opinion that they express is also useful externally as it provides financial operators with support for their investment decisions.
In 2010, two of the three top rating agencies, Moody's and Standard & Poor's, expressed their evaluations of the Bank's solidity, confirming all of last year's ratings. Fitch Ratings, while reducing the short and long term rating as a result of a deterioration in credit quality ! Figures and ratios: Members and Shareholders and pressure on revenues, increased the outlook from "negative" to "stable".
In addition to the financial and capital results, our performance in the field of social responsibility was also assessed by a specialist company SAM for possible inclusion in the Dow Jones Sustainability Indexes. In the 2010 assessment, we received an overall score of 52/100, up from previous years and, for the first time, higher than the average score of the financial sector. The score for the three dimensions - economic, social and environmental - is Results of the Dow Jones Sustainability Index compared with the system also showing a gradual improvement. Our best results came in social reporting, anti-crime measures and Total score management of customer relationships. Environmental issues show plenty room for growth, despite a significant improvement over the previous 100 evaluation. 90 89 90 80 84 86
70 73 60 63 67 69 52 50 48 48 51 40 41 46 42 30
20
10
0
2006 2007 2008 2009
Key: • BPM: score obtained by BPM • Avg Score: average score of the banking sector • Best Score: best score obtained by the banking sector • Lowest DJSI: lowest score on the index
1. BPM Members Club: a series of events dedicated to health and other topics related to leisure. These are held on a Thursday each month at the Sala delle Colonne in the Piazza Meda head office of Banca Popolare di Milano
75 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: 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 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 given to them by law and the Articles of Association.
To encourage widespread and informed participation by the members at General Meetings - a value for the member but also for the Bank - various tools and methods are prepared each year 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: regulations for general meetings, advance publicity of the candidatures for directors and officers, the letter to members on significant events, comfortable surroundings with adequate reception facilities that encourage conversation among members and their sense of belonging to the Bank. This model of “corporate democracy” is also helped by the list voting system which allows minority groups to be represented, thereby reinforcing the relationship with BPM's varied membership base.
! Some 2,600 members were present either physically or by proxy at the General Meeting in April 2010. An important Figures and ratios: Members and Shareholders innovation was the organisation of video conferences at the local offices in Bologna, Rome and Foggia, in order to facilitate and promote the participation of members in those areas, even if they are not allowed to speak or vote. This initiative was considered a test run for the organisation of decentralized meetings, which in future should allow remote attendance with the chance to speak and to vote, once the necessary amendments have been made to the Articles of Association.
The BPM Members Club stand attracted the attention of the members attending the AGM, acting as a meeting point and a source of information of significant visual impact, generating active involvement. The presentation of the Club and authorised suppliers, together with the distribution of gadgets, helped bear witness to the attention that the Bank pays to its membership base. The Geodesic Dome was also presented during the 2010 Meeting: this initiative aims to give visibility to the issues of environmental responsibility, through the presentation of "green" initiatives implemented by BPM.
With the aim of encouraging greater member participation at General Meetings and enlargement of the membership base, in 2010 the Members' Relations Commission drafted a reform of the Articles of Association which was approved in February 2011; it concerns, among other things, an increase in the number of proxies and the possibility of arranging decentralized meetings from 2012. The proposed amendments were also discussed with the Members' Associations before finalising the review.
76 1
Members' Project
The General Meeting is the natural and privileged occasion for expression of the participatory and mutualistic spirit between the members and the Bank. Over the years we have added a series of initiatives to this traditional rendezvous, with a view to increasing customer loyalty and expanding the membership base. In 2010, we developed the Members' Project, following the guidelines approved by the Board of Directors in 2009 and with the ongoing planning and supervision of the Members' Commission. The BPM Members Club, which is the real achievement of this project, produced four cultural events during the year, with a rising number of participants and a high degree of appreciation on the part of the members. These included the charity event during which the Members Club was presented and the oldest (lady) member was awarded a prize. The communication campaign through the website and direct collection of members' e-mail addresses increased the effectiveness of information flows to them and made it possible to direct the Club's activities according to their preferences. One of the strengths of our attention to members is the offer of banking and non-banking products and services through a widespread network of authorised suppliers. Then there is the programme of training and awareness for the commercial network, which, as an indirect but effective channel, aims to enlarge the membership base, and in recent months has shown positive effects. The continuation of training in 2011 to all areas of the Bank and the Group's commercial banks will lead to results in line with the forecasts in the Strategic Plan.
Members' Associations
With the aim of stimulating discussion and the participation of members in the life of the co-operative, in addition to General Meetings, we encourage them to get together in associations that represent similar interests, while still in the general interest of the Bank and according to the spirit of the co-operative model. In this regard, we make available to them facilities such as meeting rooms at the offices in Via Mazzini, Milan, a stand at the AGM and certain sections in the Social Responsibility Report.
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 of the Bank. The following pages, written by the individual associations, present their characteristics, objectives and activities in 2010 1.
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. In 2010 the Commission continued its activity started in the previous year of listening and discussing, focusing mainly on enlargement of the membership base; this debate will continue in 2011, with a view to enhancing the contribution that the members can make to the life of the Bank.
1 Each association is responsible for the content of the texts that they write
1. BPM General Meeting of Members: panoramic view of the Sala Plenaria and a detail of the podium
77 Friends of Banca Popolare di Milano
Profile and aims of the Association The "Friends of Banca Popolare di Milano" Association was set up in 2003 as an evolution of the previous organisations that represented staff members, following the amendment made to the Articles of Association to introduce the list voting system for the renewal of the Bank's governing bodies. 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. To this end, the tasks of the Association include:
stimulate participation at corporate events and investment in BPM shares; to optimise relationships with all stakeholders of the Bank; the sustainable economic and social development of the geographical areas concerned through the enhancement of relationships with customers, institutions and civil society; the 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; to express an opinion to the governing bodies with regard to the more important topics affecting the Bank and the Group; 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 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 NAME (in full): FRIENDS OF BANCA POPOLARE DI MILANO NAME (abbreviated): FRIENDS OF BPM Year of constitution: 2003 Registered office: Via S. Paolo 16, Milan Number of members at 31 December 2010: about 7,000 Chairman: Alessandro Dall’Asta
78 Activities and initiatives carried out during 2010 Activities in 2010 covered a number of key areas in line with the purposes of the Association as laid down in its by-laws: initiatives to generate involvement and debate with the associates, proposals for reform of the Association's by-laws and revamping of the institutional website.
With the aim of maintaining an ongoing debate with the associates and to stimulate their participation in the life of the Bank, the Association organised more than 20 local meetings (5 in 2009) at the beginning and end of the year. In the first series of meetings held in preparation for the AGM in April, colleagues of the Group were invited for the first time in order to make the co-operative model more shared, transparent and efficient, in line with the values of the Bank expressed in the Charter of Values and Commitments. A second round of meetings was organised to present the new programme to the associates after various empty positions on the elected bodies had been filled as a result of certain delicate matters within the Association. In general, attendance was high, with more than 1,500 people. In line with the new programme, the Association began a reform of its by-laws and the electoral rules which will continue during 2011. It will then be submitted to the associates for approval in May. To improve communication, the revision and updating of the website was completed, with a modern and dynamic graphic style through the integration of video and images.
Lastly, with a view to satisfying local needs, the Association allocated 30,000 euro from membership fees to the earthquake victims in Abruzzo for help finance a number of reconstruction projects.
Future plans and goals The following objectives are confirmed as priorities for 2011: encouraging the direct participation of employees in the life of the Bank, through: - incentives to own shares with appropriate and modern financial instruments; - widening the membership base of the Association to Group employees, family and customers; - initiatives to enhance the role of the employee member in accordance with principles of solidarity and mutuality and respect for diversity; discussion on the update of BPM's Strategic Plan in the light of the impact of the post-Lehman Brothers crisis and its consequences in terms of: - the need for more capital; - improved profitability together with a conscious and prudent assumption of risk; - organisational simplification and effectiveness.
CONTACTS OF THE ASSOCIATION Address: : Via S. Paolo 16 – 20121 Milan Telephone: 02/77004329 - Fax: 02/77003905 Website: www.amicibpm.it E-mail: [email protected] The Association's by-laws and mission statement are available on the website and can in any case be obtained from the head office of the Association.
79
Together for Banca Popolare di Milano
Profile and aims of the Association The Association was formed by a group of former employees of the Bank as a result of changes to the Articles of Association approved by the General Meeting of 19 December 2002, which intended to encourage associations of members and the use of voting lists as the primary tools for the participation of members in issues relating to the Bank. In order to develop mutual and social purposes and relationships with the territory as is usual for a co-operative, the Association is open to any member of the Bank who shares the objectives and purposes laid down in its by-laws. In line with the guidelines of its mission, the purpose of AssoInsieme is to encourage active participation on the part of its members by behaving in ways and taking decisions that protect and enhance the co-operative banking model, considering participation as the most effective way of fostering the Bank's progress based on the principles of mutuality. AssoInsieme, in nearly a decade of activity, has stood out as an institution open to all BPM members, independent, faithful to the principles laid down in its deed of foundation, determined to defend co-operative values, promoting dialogue with other associations and conscious that the good performance of the Bank cannot disregard strict observance of the institutional role of the entities that interact within the “BPM system“ (Board of Directors, Management, Members' Associations and Trade Unions). One of Assoinsieme's main objectives is to keep alive the dialogue between those who served the Bank as employees and those (customers, investors, etc.) who support it with their business activities and by holding part of its share capital.
Activities and initiatives carried out during 2010 In February 2010, the Association renewed its governing bodies. It also continued to involve its associates with public debates, workshops and meetings, also on a local basis, on many issues, collecting ideas and suggestions likely to improve the way the Association operates and its representative role in support of the Co-operative. Of particular note was the launch of a series of meetings, open to all members and supporters, aimed at encouraging the circulation of corporate information, something which is important for promoting a wider and more qualified participation of members in the life and growth the Co-operative.
ID CARD NAME (in full): Associazione Insieme per la cooperativa Banca Popolare di Milano NAME (abbreviated): Assoinsieme Year of constitution: 2002 Registered office: Milano Via G. Mazzini 11 Number of members at 31 December 2010: over 3,000 Chairman: Davide Meale
80
As a result of greater involvement on the part of the associates, interesting proposals have emerged in terms of corporate governance, orientations and analyses of BPM's business situations that have been made available through the Association's newsletter and website. This has also allowed Assoinsieme to take an active role during the year in discussions of business problems, taking a particular stance with reference to the proposals to reform the Articles of Association, the Bank's development prospects and a more balanced representation of all member associations on the governing bodies of the BPM Group.
Future plans and goals The Association aims to contribute towards promoting a more participatory role for members in the life of the Bank: with this in mind, it will make every effort, to the extent permitted by current law, to improve the recognition and appreciation of the role of member associations. It ought to be made even more incisive and constructive, ensuring that the minority associations have an adequate presence on the governing bodies of the Bank, subsidiaries or associated companies. For the benefit of those who share these assumptions, The Association will continue in 2011 to plan public meetings at its head office on issues that affect the bank's strategic alternatives and its way of being a cooperative. Study groups have been set up for this purpose to examine internal and institutional matters, which will promote more and more qualified participation. Assoinsieme will continue its commitment to promote dialogue, as we are convinced that comparing opinions is an opportunity to enhance the bases of cooperation and mutuality. The association will continue to play an active role in encouraging greater participation on the part of members and supporters at General Meetings of BPM, also ensuring their contribution to the organisation of remote attendance at the AGM.
CONTACTS OF THE ASSOCIATION Address: Via G. Mazzini, 11 – 20123 Milan Telephone: 02/80509134, 02/77003992 - fax: 02/77006149 Website: www.assoinsieme-bpm.it E-mail: [email protected] The Association's by-laws and mission statement are available on the website and can in any case be obtained from the head office of the Association.
81 Non-BPM Staff Members Committee
Profile and aims 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 office 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 profit; members and shareholders of Banca Popolare di Milano may join it.
The aims of the Association are: to safeguard and promote the image, role and economic and financial 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.
NAME (in full): NON-BPM STAFF MEMBERS COMMITTEE NAME (abbreviated): BPM MEMBERS COMMITTEE Year of constitution: 1994 Registered office: Via Pietro Mascagni 15, Milan Number of members at 31 December 2010: 3,825 Chairman: Piero Lonardi
82 Activities and initiatives carried out during 2010 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 Claudio Danelon* Executive Committee: Piero Lonardi Board of Statutory Auditors: Salvatore Rino Messina (Acting auditor); Emilio Cherubini (Alternate auditor) Board of Arbitrators: Anna Maria Sanchirico. During 2010, the representatives of the Committee continued the measures to encourage opening up the Co-operative to all 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 corporate governance and making proposals to raise efficiency.
Future plans and goals The Committee will make every effort to develop initiatives that involving the largest number of members in order to rebalance the relationship with employees and former employees and achieve the objective of ensuring that the business plays a central role in the life of the Co-operative.
CONTACTS OF THE ASSOCIATION Address: Via Pietro Mascagni 15 – 20122 Milan (registered office) Telephone: 02/782554 - Fax: 02/782264 Website: www.comitatosocibpm.it E-mail: [email protected]
*Co-opted following the resignation of Roberto Mazzotta
83 Lombardy, Milan - The Bezzi 2 Services Centre Registered office of ProFamily Personnel All policies are implemented through people who work for the company: their involvement and participation are therefore fundamental for the success of any initiative and for the creation of value that ensures the company a strong competitive advantage. The presence of the employee member who participates in profits and corporate management makes the Banca Popolare di Milano model unique: the value of our people is in fact strong by tradition, mission and vocation. Even though the individual companies have specific peculiarities, the commitment is still to make them all feel that they belong to the same Group.
Training, people development and the enhancement of diversity, remuneration system, industrial relations, health and safety are the main areas in which the Group is involved. 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 well-being in the workplace for all Group employees.
The need to activate and define policies, improve communication and employee involvement, stimulate innovation and sustainable growth are the key lines of strategy for 2011. Training The training plans of the individual companies define continuing education as a critical success factor for business growth and the achievement of objectives, with a particular focus on: strengthening and supporting the commercial, professional and social skills of individuals; promoting actions that develop positive values and behaviours, with everyone being fully aware of their role, responsibility, autonomy, activity and collaboration; supporting the development of management and leadership skills that integrate the business culture with the ability to read the dynamics of the external and internal environment.
ID CARD (figures at the end of 2010)
TOTAL NUMBER OF EMPLOYEES 7,926 (94.3% of the Group) In the network 70.5% Women 46.1% Graduates 25% Part-timers 13.8% New recruits 2.6% Average period of service 16.5 years Average age 42.8 years
Figures relating to Banca Popolare di Milano, Banca di Legnano, Cassa di Risparmio di Alessandria, Banca Popolare di Mantova and Webank. Activities in 2010 featured: Days’ training provided a strong focus on the professional development of newly recruited staff from the moment they are hired (information on technical, regulatory, service orientation, cultural and behavioural issues); Optional the design and delivery of training courses to support technical 26,000 20,044 and behavioural aspects aimed at professional and managerial Obligatory staff; moments designed for the evaluation of know-how acquired 18,879 23,969 during the training program, integrated with the level of skills acquired, as part of the planning of professional roles; 2009 2010 continuity in the defence of compulsory training as an element of risk prevention for the company and for people in their activities; constant verification of the level of satisfaction, through timely and regular checks on course participants through an annual survey of internal customer satisfaction, also involving their heads of department.
In total, 44,000 days' training were Day’s training by level provided in 2010, of which 33,500 to BPM personnel and the rest to the employees of other companies. The decrease in training days compared Officials 37.4% with 2009 (-3.7%) is linked to the reduction in staff due to the Solidarity Other personnel 59.9% Fund. The final figure is also affected by the reduction of compulsory training after the intensive campaign carried out in 2009 following the changes made to the regulatory framework; 2010 was used for the completion of the residual compulsory training and Managers 2.7% for the introduction of training on the New Rules on Transparency.
In particular, increased attention has been paid to the development of management skills (2,743 training days delivered) as the key to increasing entrepreneurial vision and strategic culture, providing the people involved with the tools to anticipate needs through awareness and to understand the economic complexity of their work.
86 In addition to these main Group activities, individual companies have organised their own initiatives:
A series of training courses dedicated to recently appointed branch managers has been launched to support and develop in a planned manner the technical, professional and managerial skills required for effective exercise of this role. The key elements of the project are the introduction of a dedicated process and tutors to support the professional growth of managers, as well as the involvement of special company structures to encourage the spread and enhancement of BPM's corporate know-how.
Particular attention was paid to the new management training project, which has as its primary goal the growth and preparation of a manager's colleagues, taking into account those people, including many managers, who have signed up for the Solidarity Fund.
The management development path for branch managers has been integrated with the definition of a development path designed to implement the cognitive and experiential learning processes for the realisation of commercial development steps, which began in 2011. This path involves about half of the directors of CRA.
As required by the Strategic Plan, new branches have been opened, hiring experienced people locally. These people have been included in training programs to meet the needs of individual and business customers; a training programme aimed at spreading the spirit of belonging and cultural integration with the BPM Group has been reserved for management.
A project has begun, starting from the definition of BPM's corporate mission and vision, that will continue in 2011 with the mapping of roles and skills as a basis for the creation of a structured system of assessment, career paths and training programmes.
Particular attention is paid to colleagues with disabilities, with training programmes based on approaches, methods and languages that respond to the needs of the users. The content relates to current regulations and laws, with specific interventions targeted at people with different types of sensory disability. Customized projects are also created for individuals to facilitate and support their integration, their consolidation in specific tasks and/or their professional requalification.
At the end of 2010, BPM activated its third photovoltaic system installed on the roof of the Services Centre in Milan. It is a 98 KW solar panel array which will provide power for the entire Training Centre.
D evelopment The process of personnel planning aims to monitor the professional growth of people with emphasis on the development, training and enhancement of professional skills that guide Personnel Community
BPM Suppliers the person in the exercise of their duties throughout their entire career, in a logic of full group awareness and responsibility for the position that they hold at any one time. BPM Customer group The individual Group companies adopt different management tools for professional Member development in relation to particular aspects of their organisation and market positioning. and Shareholders
Environment
87 In 2010, in-house personnel development initiatives have been mainly in the following areas:
Professional orientation BPM reviewed its process of insertion and orientation of new employees, obtaining as an added value a clear and transparent sharing of the business skills that are needed.
Development paths During 2010, BPM extended the course on interpersonal skills introduced in 2009 to all IT staff. This course, which involved around one hundred people, helped to improve relationships and make contact with internal and external customers more effective; Banca di Legnano launched two initiatives called “Development of knowledge as a lever of emancipation“ and “Encourage your colleagues' growth“, attended by 35 people, which had as the main side effect a greater awareness of the role of managers; Cassa di Risparmio di Alessandria implemented the “Valore“ and “Next“ projects, which involved 33 managers of the commercial network, with the aim of increasing awareness and understanding of economic complexity to foster the cultural transformation of commercial behaviour.
Performance assessment In 2010, Banca Popolare di Milano revised its Contribution Management System, making the following improvements: consolidation of the assessment process, through more explicit performance targets and the definition of appropriate support tools; training and awareness exercises to increase the managers' objectivity when making personnel assessments; sharing the elements that help increase the effectiveness of the interview between the person being assessed and the person carrying out the assessment; improvement and transparency of the assessment process. Our experience of this approach in 2010 confirms the validity of the measurement tool and its effectiveness for operational purposes: in particular, using this system helps improve the quality of the relationship between manager and employee and the individual's focus on the company's goals. The staff development plans of Banca di Legnano only made reference to managers' reports using the “Characteristic Notes“ feature; these constitute a model for assessing the performance and potential of employees, as well as the operational requirements when activating a career plan. The Contribution Management System has now been extended to Cassa di Risparmio di Alessandria, with a view to its implementation throughout the BPM Group. During 2011, ProFamily will complete the definition of its organisation chart and lay down the individual professional skills that it needs. It will then prepare professional training and development plans. It will also introduce a model for the assessment of annual performance that will enable it to monitor the results achieved by staff in a timely and individual way.
The "Development path for interpersonal skills of IT personnel" project was recognised in the Sodalitas Social Award1 as an initiative worthy of mention, as it is based on values such as the central role of people, sense of responsibility and respect for diversity. The initiative gained a mention in the Golden Book of CSR.
1 Recognition that the Sodalitas Foundation awards to companies, business associations, industrial districts and organisations involved in projects of Corporate Social Responsibility
88 Remuneration System The remuneration and incentive policies, which enhance individual corporate features, are approved by the Parent Company's Remuneration Committee as well as by their respective Boards of Directors and Shareholders' Meetings.
For the Group's commercial banks, the remuneration system is regulated by the national contract for bank employees, which in addition to the normal thirteen months' salary, provides for other typical items based on the national contract and, to a certain extent, on internal union agreements. These items are usually fixed according to the employee's level, whereas in the case of new recruits, they are awarded on a gradual basis. Remuneration also includes a variable element (in the case of the Parent Company, 3.59% of the fixed element) which takes into account the achievement of certain financial results on the part of the Bank and the pursuit of specific departmental objectives. The approval of the 2010-2012 Strategic Plan introduced a system of bonus incentives based on the achievement of specific objectives laid down in the Plan.
In addition to the fixed and variable elements established by contract and paid in cash, there is also an "indirect" form of remuneration within the Company that takes other elements into account.
BPM Healthcare Fund Fixed portion of remuneration Company social clubs Variable remuneration Nursery Incentives Company canteen Awards Remuneration Benefit Supplementary Pension Fund Banking benefits
Career paths Work Analysis of career potential Training and environment Organisational climate Communication systems Assessment of skills development (Work Life Performance guidance Quality of relationship between head of Training Balance) department and employee Work/life balance
Ares Bipiemme With 9,884 associates, including 75 honorary associates and 26,485 relatives, in 2010 Ares Bipiemme carried on its usual activities to enrich the corporate welfare system by making proposals with a significant economic benefit to support families through the provision of tourism, shopping, magazine subscriptions and season tickets for public transport and a car sharing service, as well as tickets for cultural events. Summer camps for employees' children are a real help in balancing work and family time. In 2010, water dispensers connected to the mains were installed in the refreshment areas of BPM's head offices, bringing economic benefits to individuals and greater respect for the environment by avoiding the use of plastic bottles. HEALTHCARE FUND In 2010 a website was set up to improve communication with associates by facilitating reimbursement claims. Health care delivery by physicians and approved entities continued for the 18,396 associates, health education was carried out to promote research for the early diagnosis of diseases and the provision of assistance to non self-sufficient people through forms of targeted assistance, also with financial subsidies. Of particular note is the convention for the early diagnosis of cancer with the Italian League for the Fight against Cancer in the province of Turin, in addition to those already active in the provinces of Milan, Monza, Bologna and Rome.
89 Particular aspects that characterised certain Group banks during the year are as follows: Cassa di Risparmio di Alessandria has renewed its health care policy with the addition of new case studies (dentistry and eye care), as well as its accident insurance policy; Webank increased its contribution to supplementary pension schemes; Banca Popolare di Mantova began a gradual alignment to BPM standards in terms of remuneration policies (improving the transport indemnity and supplementary pensions). Health and safety 2010 saw consolidation of the new approach to risk assessment, based on attention to the person. In addition to considering the current conditions (workplace, equipment, facilities), the new approach also considers preventive measures.
The issues of health and safety were sustained throughout the Group with a commitment to training and specific courses in the classroom to colleagues at various levels responsible for emergency relief activities and with distance learning courses for all staff to develop their knowledge and awareness of risks and the preventive measures to be taken in each case.
In early 2011 BPM completed and released an updated and codified text of business processes that define the rules and procedures for the management of risk to safeguard employees' health and safety in the workplace.
As usual, fire risk was analysed and on-site inspections continued to verify the presence of asbestos and radon gas and to test air quality. Applying the health protocol, about 400 visits have been made in the context of health surveillance for employees classified as video terminal operators or staff exposed to other risks. The spread of the "swine flu" epidemic was closely monitored, checking those on sick leave, though none became critical. The investment in high-tech solutions to increase security has led to stronger defence measures at the branches. Cooperation with the Police and the Prefectures continued with the signing of protocols of understanding for the prevention of bank crime. BPM signed up for seven new protocols in 2010.
90 Each Group Company distinguished itself with different activities and initiatives for the promotion and protection of health and safety.
Through a circular to promote the organisational welfare, BPM recalled some of the more important initiatives available to the staff: the prevention of post-robbery trauma and the rules on maternity leave, the names of the Workers' Safety Representatives (WSR), who are assigned the task of participating in the process of safeguarding and protecting health and safety, which should lead to improvements in the working environment.
The main activities promoted by Banca di Legnano were: health checks for the prevention of occupational diseases or acute technopathies, an annual inspection of all workplaces made by the Head of Prevention and the Company Doctor, appointment and training of the Safety Supervisors to manage safety, evacuation and first aid. Cancer prevention for female staff continued in 2010.
The Board of Directors of Cassa di Risparmio di Alessandria identified the Head of Personnel as the "Manager Responsible for Health and Safety." The latest regulatory updates included in CRA's Risk Assessment Document include: assessment of the risk of robbery, assessment of risk from exposure to artificial optical radiation at work and assessment of the risk of work-related stress.
Webank updated its Risk Assessment Document and made an analysis of work-related stress risk, preparing the appropriate documentation, as required by current legislation.
Prevention of post-robbery trauma stress 1 As part of effort to promote welfare and in accordance with Legislative Decree 81/2008, a project called “Let's talk about robberies“ has been created to help network colleagues understand the psychological and behavioural aspects of robberies. A brochure has been prepared to illustrate in Improvvisamente ti senti sottosopra. simple language what are considered the “normal“ psychological and physical reactions to a dangerous situation. The aim is to help people react so that they can return as quickly as possible to a situation of well-being. In 2010 the initiative was presented to HR managers, Workers' Safety Representatives and Union Representatives of Banca Popolare di Milano, Banca di Legnano and Cassa di Risparmio di Alessandria. In January 2011, the initiative was extended to Banca Popolare di Mantova.
Parliamo For years, there has also been a psychological support service. It was originally designed to provide di rapine support for people in difficulty; now it is structured to help the heads of organisational units to facilitate processes of integration when managing their colleagues. In particular, it works actively with all areas of the Group's commercial banks to promote ways of maintaining well-being at work and appreciating diversity.
Number of people who have used the psychological support service in 2010. Banca Popolare di Milano 107 Banca di Legnano 2 Cassa di Risparmio di Alessandria 3 Total 112
1. The “Let's talk about robberies“ brochure: This is a Group initiative to help people who have suffered a robbery. The emblem of the turtle upside down represents the state of "bewilderment" that an event like this can cause in those who suffer it.
91 Industrial relations 2010 was marked by intense activity in industrial relations mainly devoted to the signing of an agreement for operations of a purely corporate nature, such as the merger of Bipiemme Private Banking SIM with Banca Popolare di Milano, the sale by BPM of Anima SGR SpA and the interest acquired in AM Holding, a new primary group in the asset management industry, the merger of WeTrade SpA with Webank SpA and the sale of the custodian bank activity to BNP Paribas Securities Service, Milan.
In addition to these aspects, industrial relations focused on restructuring and rationalization of activities and structures within the Group's three main banks with a view to cost containment and the freeing up of resources for other duties: consolidation of branches to reorganise the Group's territorial presence; centralization at the Parent Company of certain administrative activities of Banca di Legnano and Cassa di Risparmio di Alessandria, as well as the outsourcing of operational management, production and printing of the monitoring and systems department (IT).
The teleworking contract has been renewed.
At the end of 2010 the level of unionisation of employees at the Group's banks was 89.1%.
2010 2009 Days worked per head 214.0 210.3 Overtime hours per head 14.2 12.3 Hours accrued in the time bank per head 7. 8 7. 4 Days of sick leave per head 9.3 9.0
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Involvement of the personnel Again in 2010, we paid great attention to the involvement of employees through a series of initiatives.
Of the Group's various initiatives, there was a convention called “The pleasure of acting together“ dedicated to managers for the dissemination and sharing of the guidelines of the 2010-2012 Strategic Plan. The various Group companies distinguished themselves in the following ways:
For Banca Popolare di Milano the AGM has always been the best occasion for getting involved in the life of the Bank (see the chapter “Members and Shareholders“). As usual, Banca di Legnano and BPM organised a day of presentation for new recruits and an awards ceremony for staff who had reached 25, 30 and 35 years of service. Webank organised a meeting to present the merger with WeTrade. It also created an internal 2 web community called Brainville to enable employees and other staff to contribute in a simple and informal way to the development of ideas at Webank. Banca Akros launched an innovative path of internal communication to educate employees on customer-related activities. The purpose is to achieve a better understanding of customers and their needs in order to acquire a greater awareness of the financial services being offered. The meetings are held once a fortnight and feature in-house speakers. ProFamily arranged a conference with its agents to explain the operational and commercial development programmes. It has also organised other initiatives such as: Christmas and Easter presents for the children of employees and summer camps and an office Christmas dinner with a personalised gift for each employee.
Making differences count and reconciling work/home In 2010 particular attention was given to issues of diversity in the broadest sense, with a significant number of projects, many in collaboration with other entities.
Diversity benchmark In collaboration with the Diversity Management Observatory of SDA Bocconi, a questionnaire was sent to a sample of employees of the commercial network to test awareness of the initiatives and tools provided by BPM, particularly on issues such as flexibility, integration, communication climate, orientation towards diversity management. The tools and services to provide support for children and the use of part-time employment were again confirmed as strengths, while integration policies and
1. The pleasure of acting together: a major convention in February 2010, ably compèred by Daria Bignardi, brought together many members of staff of Banca Popolare di Milano with a special appearance by Renato Mannheimer. 2. Material presented during the new recruits' day
93 practices regarding orientation to diversity still require an effort in terms of communication and information sharing. In general, people % of female staff in the Parent Company have a high perception of what the company offers to otherwise-abled 46.7% members of staff. 46% 44.9% 43.6% 42.1% Organisation by Gender The steady growth in female staff at BPM has led to a need to introduce methods and tools that enhance the contribution that gender difference can make to organisational well-being. The “Organisation by Gender“ project, funded by the Ministry of Labour and Social Policies and 2006 2007 2008 2009 2010 supported by the Province of Milan, will enable us to start a change process in line with the principles laid down the Charter of Equal Opportunities in support of diversity.
Differences in age: “Working Age“ workshop Distribution by age bracket Banca Popolare di Milano took part in the “Working Age“ workshop sponsored by Fondazione Sodalitas on age difference in business. It 0.9% 0.8% 100 Over 60 years old focused on the management of generation Y (young people born in 24.6% 25.8% From 50 to 59 years old From 30 to 49 years old the '80s), those over 50 and inter-generational dialogue, which is an Younger than 30 years old important hub for the transfer of skills from senior to junior staff. In 50 65.6% 64.5% particular, the sharing of best practices already active in the company and the analysis of the two groups' motivations are the starting 8.9% 8.9% 0 point for further tests on the management and enhancement of age 2010 2009 differences.
Otherwise-abled people: "Work & Disability" workshop BPM and Sodalitas promoted the creation of a permanent workshop on “Work & Disability“ to help disabled people enter and remain in the world of work. The companies involved, engaged on the management and development of disability, take a pro-active role in the integration of otherwise-abled people in the workplace, by lobbying national and local institutions, and by maintaining a constructive dialogue between companies and associations representing otherwise-abled people.
In early 2011, ProFamily started a project for the integration of otherwise-abled people in collaboration with a consulting firm accredited by the Province of Milan.
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SODALITAS DAY On 26 April, a session on “The companies supporting the 2 value of people and work“ was held in the Sala delle Colonne of Banca Popolare di Milano as part of the celebrations of Fondazione Sodalitas' 15th anniversary. BPM also brought its experience and demonstrated its commitment to support its staff presenting the following initiatives to a vast audience: The POESIA Project, the Code of good conduct for the prevention of discrimination, the Charter of Equal Opportunities and Equality at Work, “The Garden of Bez“ (company nursery) and flexitime granted to employees to help reconcile work and family life.
Enhancement of parenting In September 2010 a new section of the “The Garden of Bez“ was opened to admit more children and allow parents to organise their work better. This expansion took place thanks to the contribution of the Lombardy Region. The nursery, which can now admit up to 72 children, currently has 41 children of employees and 22 external children (7 under an arrangement with the Municipality). Surveys again reflected the high degree of satisfaction with the service provided, the pedagogical quality and the care and attention given to the children's nutrition.
In the Christmas holiday season, the nursery hosted around ten children enrolled in previous years and now attending the kindergarten. Lastly, “The time of growth“ meetings, a series of initiatives to help parents grow together with their children, were successfully extended to all of the Group's staff. The nursery is getting ready for environmental certification, in line with BPM's attention to the environment.
It is worth noting that Banca di Legnano has continued to convert full-time contracts to part-time contracts for female staff returning after maternity leave; in addition to their letter of appointment, new mothers are also given a plan for remote professional development, encouraging independent and personalised learning.
1. The Garden of Bez: the company nursery based at the BPM Bezzi1 Services Centre 2. Brochure distributed during the Sodalitas Day
95 Apulia, Vieste - Panoramic view from the beach
96 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 Office which over the years has developed new professional skills using more and more sophisticated procedures. Initially only at the service of the Parent Company, the Central Buying Office has progressively extended its radius of action to include all of the Group's commercial banks. We aim to establish clear and lasting relationships with our suppliers. The fact that these relationships are based on reciprocal collaboration means that disputes are extremely rare.
Mission and guidelines of the Central Buying Service
Transparency and equity in the selection process When dealing with suppliers, the Central Buying Office 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 involved.
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.
ID CARD (figures at the end of 2010) TOTAL NUMBER OF SUPPLIERS about 2,700 Certified (*) 28.4% Customers (*) 66.2% With a relationship of more than 5 years (*) 10.9 Resident in North-West Italy 74.5% Suppliers of services 70.9%
Figures relating to Popolare di Milano, Banca di Legnano, Cassa di Risparmio di Alessandria, Banca Popolare di Mantova and Webank, except those with an asterisk which refer only to the Parent Company. Common suppliers are shown under each bank.
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Personnel Community
Relations with suppliers BPM Suppliers group All suppliers that comply with the requisites established by the Central Buying Office are BPM given the chance to compete for the provision of products and services, also through the Customer group Member use of on-line tenders that considerably widen the possibility of access to suppliers and and Shareholders guarantee transparency, fairness and speed in activating negotiations. Environment Relationship with suppliers The objective of the Central Buying Office 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.
Last year, the Central Buying Office consolidated its use of the electronic platform which interacts with the market and makes it possible to deal with an increasing number of suppliers. Those wishing to submit an application for the supply of products, goods and services can use the Pre-qualification Service on our website; if the offer is in line with the needs of the Group and the technical and economic suitability of potential suppliers is confirmed, they will be contacted by the Central Buying Office.
As usual, suppliers are required to self-certify compliance with existing environmental legislation and laws on the protection of health and safety. In this regard, with reference to the Parent Company, there has been an increase in the number of suppliers with at least one certification (over 400 at the end of 2010, 28.3%, up by 12.6% on 2009) and their turnover accounted for more than 60% of the total.
In 2010, with the aim of further consolidation of relations with our suppliers, we also started an effort to develop those in the province of Milan who are not customers. This initiative, which will continue to a greater Suppliers of the Parent Company extent in 2011, contributed to a 33% increase in the number of supplier-customers of the Parent Company (934 at the end of 2010, 65.9%). 65.9% 2009 50.6% 2010 The relationship with suppliers has been managed in compliance with the guidelines laid down in the SIRF Project (“Sostenibilità e Integrità nei Rapporti 28.3% con i Fornitori” or Sustainability and Integrity in Relations with Suppliers) which 25.6% Banca Popolare di Milano signed up for in the past, which requires fairness in all dealings based on a relationship of mutual satisfaction.
Certificates Customer
1. “La Cascinetta“ farm at Vallieri: “La Cascinetta“ farm, which produces and sells poultry, is only one kilometre from the WWF oasis of Vanzago. It is a quiet place to have a meal with typical dishes from the local cuisine and a shop that sells its own cheese, rice and honey directly to the consumer. The farm has been a customer of the BPM Group since the early '90s
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2. The “Velasca Tower“ skyscraper in Milan: the oblique beams which support the wider upper floors give an unusual aspect to the skyscraper, which the Milanese nicknamed the "skyscraper with garters". It is still a symbol of architectural courage and ability to experiment, undisputed characteristics of the Lombard capital
99 Lombardy. Legnano Photo: Bernocchi Cycling Cup: this is a cycling road race that has been held ever since 1919. It is dedicated to Antonio Bernocchi, an Italian entrepreneur in the textile industry. Banca di Legnano was initially the main sponsor, then three years ago its name was added to that of the race. The top managers of the BPM Group also attend this event. 1
Community We have always chosen to strengthen our links with the local community, with which we maintain a continuous and long-established working relationship, supporting economic activities and cultural associations, foundations and government agencies.
In recent years we have added other forms of assistance to the traditional direct financial support, to better define our role of service and connection between the many different realities, a logic that combines “being profitable“ with “being proficuous“.
ID CARD (figures at the end of 2010) NUMBER OF INITIATIVES FINANCED about 500 Donations and gifts 68.5% AMOUNT OF DONATIONS AND SPONSORSHIPS Over 7 million euro Donations and gifts 27.6% In the cultural sphere 60.6% Milan and Province of Milan 73.1% Donations and sponsorships
As foreseen in their Articles of Association, Banca Popolare di Milano Projects being funded by sector of activity and Cassa di Risparmio di Alessandria have the chance to support the territories to which they belong by allocating part of the previous year's Solidarity 13.2% earnings to social and cultural initiatives. Culture 60.6%
The BPM Group confirms its attention to the community by acting Sport 9.2% concretely to support not only major cultural, scientific and humanitarian institutions, but also small local entities, in many cases continuing long- Health 7.6% standing relationships. Art, culture, sports, education, health, solidarity: many areas of action to which the Group has focused its contribution in 2010. Despite the difficult Education 4.1% economic climate, our donations and sponsorships exceeded 7 million euro, about 2 million euro more than the previous year, concentrated in Scientific research 1.5% the territories served by the Group.
Other 3.7%
Projects being funded by geographical area
Rest of Lombardy 6.9%
Piedmont 5.0%
Lazio 6.2%
Other regions 5.9%
Rest of the world 2.9%
Milan and province 73.1%
Personnel Community
BPM Suppliers group BPM Customer group
Member and Shareholders
Environment
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Among the most significant sponsorships and donations made by BPM, the following are mentioned in order of size:
Donations and gifts Sponsorships ABC Zambia Onlus Teatro alla Scala Amref Italia Fondazione La Triennale Amici Centro Dino Ferrari Policlinico Associazione Cultura Lavoro Amici Gastroenterologia Granelli Orchestra Verdi Associazione Dialisi Ospedale L. Sacco Pallacanestro Varese Associazione Abbazia Mirasole Fondazione Hangar Bicocca Associazione Giovani Diabetici Fondazione Sussidiarietà Associazione Serenità Pallacanestro Olympia - Milano ATTIVEcomeprima Stramilano AVSI – Associazione Volontari per il Servizio Internazionale Fondazione La Triennale (international service volunteers) ASPHI - Avviamento e Sviluppo di Progetti per ridurre l’Handicap mediante l’Informatic Scripta Manent Edizioni - Volume Bandiera Madre (start-up and development of projects to reduce handicap by means of IT) Celim Volunteers in the World Church of Santa Maria alla Porta - restoration work at S. Maurizio and Monastero Maggiore Church of Santa Maria alla Porta Modern and Contemporary Art Gallery in Gallarate Comunità Nuova Fondazione San Benedetto Fondazione Aldo Aniasi Municipality of Bollate - Festival di Villa Arconati Fondazione Anna Villa e Felice Rusconi Rassegne SpA - Associazione Amici di MiArt Collegio Universitario di Milano Fondazione Museo Poldi Pezzoli Fondazione don Gnocchi FAI – Fondo Ambiente Italiano Fondazione E.T.N.A. – Excellence Through Newest Advances Festival Pianistico Internazionale Arturo Benedetti Michelangeli Fondazione Famiglia Legnanese Municipality of Milan Fondazione Rui Fondazione Banco Alimentare (food bank) Fondazione Russia Cristiana Progetto Pinacoteca di Brera Fondazione Slow Food Biodiversità Serate Musicali Fonos Orizzonti Sereni Fondazione Emergency Istituto Mario Negri La Cappella Musicale Istituto don Luigi Sturzo 21grammi Srl Istituto dei Tumori Fondazione I Pomeriggi Musicali - La Milanesiana Medici Volontari Italiani Municipality of Margherita di Savoia (Barletta, Andria, Trani) for cultural activities OASI srl AIRC – Associazione Italiana Ricerca sul Cancro Opera don Orione Municipality of Vieste - for cultural activities Parrocchia San Martino in Greco Prima Show Srl - concert by Charles Aznavour Piccolo Cottolengo Fundraising for the restoration of the Duomo di Milano Università Bocconi AI.BI. Amici dei Bambini A.S. Masseroni Marchese - youth sports initiatives Fondazione Pier Lombardo Fondazione per l’infanzia Mc Donald Associazione Culturale Borbonica Sotterranea Fondazione Rosselli Centro Furio Jesi Fondazione Cineteca Italiana S.G.Pro Patria ASD Femminile Inter
1. Stramilano: ever since the first edition of the Stramilano (the Milan Marathon), Banca Popolare di Milano has been an official partner of this important event, which combines sport and socialising
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Stramilano is an event in which BPM is particularly involved, giving it support ever since the first edition; it is a sports event with the presence of international athletes and considerable participation on the part of amateurs. The Bank also supports the Coppa Agostoni, an historical professional bicycle race that takes place in the Brianza area north of Milan. At the end of December, the Bank supported a musical show entitled “We are all one: soundscapes from the Arctic“ sponsored by Survival, a non-denominational, non-partisan charity committed to raising awareness and fighting the injustices suffered by indigenous peoples around the world.
Banca di Legnano's interventions can be broadly categorised in two areas: those of an institutional nature, which include sporting events, such as the Palio di Legnano, the Banca di Legnano-Bernocchi Cup Grand Prix (an important professional cycling race that is a symbol of the city), sponsorship of musical and theatrical festivals of regional significance; those aimed at local initiatives, including: sponsorship of the "I Legnanesi" theatre company, sponsorship of “Jazz Emotions“ concerts, in collaboration with the Milan Conservatory and the Nicolò Paganini Musical Association, sponsorship of the exhibition “Art and Music in the Groane Park 2010“.
Cassa di Risparmio di Alessandria supports mainly small and medium sized local entities and associations. Among the initiatives in 2010, together with the Fondazione Cassa di Risparmio di Alessandria, there was the publication of a book, “The Years of National Unity“, which is the third volume in the trilogy entitled “Alessandria from the Risorgimento to the Unification of Italy“, completing the studies and research concerning the territory of Alessandria. Support was also given to: The Diocese of Alessandria, to provide small subsidies to families in difficulty; Associazione Partita del Cuore, to organise a football match to raise funds for the people of Haiti; 2 CNA Etica e Solidale to which the cost of traditional Christmas gifts was donated for the purchase of food and medicine for distribution in Zagher (Eritrea); LILT - Italian League for the Fight against Cancer - Provincial Section of Alessandria, to organise a concert to raise funds for research; ATP Challenger Alessandria to sponsor an international tennis tournament.
In terms of donations and sponsorships, the policy of Banca Popolare di Mantova is mainly to transmit the values of history and culture. The most conspicuous donations were in favour of Mantua's Museo Diocesano F. Gonzaga, with sponsorship for the publication of the “Limoges Painted Enamel“ catalogue and 3 presentation of the book to the citizens at a press conference, and Festivaletteratura to sponsor the event “The Library of Ennio Flaiano“ RICCHEZZA COLTIVARE.
è UNA AMIAMO held in the Palazzo dell’Agricoltura, the Bank's new head office. CHE
CULTURA Other donations, also decided on the basis of proposals from the branches, cover broader areas,
LA such as musical and sporting events, and help to support projects and initiatives of local associations.
LA BIBLIOTECA Mantova 8/12 settembre 2010 FLAIANO
1, 4. The Palio di Legnano: this takes place on the last Sunday of May and commemorates the battle in 1176 won by the towns of the Lombard League over the Emperor Frederick Barbarossa. Through Banca di Legnano, the BPM Group has always been one of the main protagonists of this important event. 2. Limoges Painted Enamel: poster of the catalogue 3. Literary festival in Mantua: the BPM Group was the main sponsor of The Flaiano Library during this major literary festival. The exhibition allowed the public to admire the entire library of Ennio Flaiano, one of the leading figures of Italian literature and cinema
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The main beneficiaries are listed below:
Donations and gifts Sponsorships Associazione Virgiliana di Bioetica Università Cattolica – Piacenza branch Gruppo Famiglie di Poggio Rusco Fondazione Università di Mantova Associazione Scuola senza Frontiere ARCI Mantua Associazione esercenti asolani Consorzio Agrituristico Mantovano Associazione Edera Onlus Podium Team Volley - sports club Associazione S. Margherita Pego Volley – sports club Istituto Comprensivo di Suzzara Caseificio Razionale Novese Asilo Santa Maria Event & Congress Organisations srl Circolo ricreativo Magnacavallo Azienda Ospedaliera Carlo Poma Club del Fornello, Mantua branch Società Lombarda Chirurgia Plastica Confagricoltura Mantua Gruppo Sportivo Porto Mantovano Prospecta Group srl
In order to build up its social identity and ethical profile, Webank has extended its corporate social 5 responsibility from the company to the employees who were personally involved, making them the protagonists of the various initiatives being promoted. The commitment on this front for 2010 was the support for the “On the girls' side“ project of Jambo!2011 the Children in Crisis Association, which saw various actions including a donation to support the program of scholarships for higher education of a group of girls in Tanzania. However, the company's commitment goes beyond a simple donation. A number of Webank employees travelled to Tanzania to witness the project in person; they then produced a calendar which they sold to raise more funds Un’ avventura di dieci giorni che fa bene tutto l’anno. for this charity. Other sponsorships included: Teatro Ciak Pallavolo Piacenza
The largest share of the maximum amount allowed by the rules of Banca Akros on donations and sponsorships was given to initiatives, entities and non-profit organisations working to protect and support poor children and in favour of their education.
5. Webank and "Jambo Team": this involves a journey by a group of Webank employees to support Children in Crisis as part of an important project for girls in Tanzania and their education. Based on this experience, they created a calendar with all the proceeds from sale being donated to charity
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Initiatives for the community
The following are the main initiatives broken down by area of intervention.
Solidarity
The Group has answered the call of AGIRE (Agenzia Italiana di Risposta alle Emergenze Onlus) to support the population of Haiti after it was hit by a devastating earthquake, managing in a very short time to activate
TERREMOTO AD HAITI a series of initiatives to inform and raise public awareness and to multiply the number of fundraising channels:
AGIRE e BPM intervengono per portare soccorso alle popolazioni colpite dal terremoto. messages in the branches, on the ATM network, on websites, personalised e-mails to corporate customers. ANCHE TU PUOI DARE UNA MANO ad AGIRE insieme a BPM!
Fai la tua donazione… - presso tutti gli sportelli BPM (c/c intestato ad AGIRE - IBAN IT47U0558403208000000005856 Enormous solidarity on the part of customers made it possible to collect more than 350,000 euro by bank causale Emergenza Haiti) - presso tutti i Bancomat Quimultibanca (Menù - Pagamenti e Ricariche, digitando il codice 111) - andando su www.faresolidale.it transfer only, to which the donations of Group employees added more than 60,000 euro.
Following the earthquake in the Abruzzo region in April 2009, the Group collected 280,000 euro which was used to support three projects: the construction of a metal bridge for people to reach the new school building in the town of Fossa; re-organisation with furniture for the study and reading rooms and all the necessary equipment for classrooms and for the "Cardinal Carlo Confalonieri" library for the city of L'Aquila; classroom furniture for the new Istituto Superiore di Scienze Religiose for the city of L'Aquila.
In July, BPM worked together with FC Internazionale in aid of “Inter for Emergency“: for two weeks, in the Sala delle Colonne at the head office of the Bank, Inter fans had the opportunity to be photographed next to the Champions League Cup recently won by Inter, making offers to help build a Paediatric Centre for Emergency in Goma, located in the eastern part of the Democratic Republic of Congo.
The generosity of the Group and its employees is manifest not only in extraordinary events. In 2010, the ARES BPM Co-operative again raised more than 145 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 funds raised supported various projects that are listed in the following table:
1. Inter for Emergency: in the Sala delle Colonne of Banca Popolare di Milano, last summer the Inter fans were able to take a souvenir photo with the Champions League Cup. A unique charity initiative, with the proceeds going to build a Paediatric Centre for Emergency in the Democratic Republic of Congo
106 Association Project/purpose Intervention area Preparation and distribution of 400 Christmas food parcels Banco Alimentare Italy for needy families indicated by employees or retired staff. VISPE – Volontari Italiani Solidarietà Paesi Construction of a well for farm work Burundi - Bujumbura - Kanyosha area Emergenti Construction of a building comprising a flat, two dormitories, ABC Zambia Zambia – Southern province – Mazabuka a laundry, a kitchen, a chapel, bathrooms and showers Missioni Congregazione Purchase of furniture for the classrooms of a primary school Uganda – Kisoga Suore Mantellate SOS Bambini Onlus Construction of two toilets in a family house for disabled children Romania - Sight State Centre for Children Renovation of the Educational Centre to allow proper conduct SHIS Centro Diurno Piccolo Principe Albania of activities with children Ethiopia - Amhara Region, North Wello zone CBM Construction of five wells - Guba Lafto Ciad – Regione Moyen Chari, Dipartimento ACRA – Associazione di Cooperazione Restructuring of schools in two villages. della Grande Sido, villaggi di Ngakorio e Rurale in Africa e America Latina Kokouroundja
Lastly, also worth mentioning is the traditional fund-raising among the staff of Cassa di Risparmio di Alessandria to support Telethon.
As part of projects for the occupation of disadvantaged people, Banca Popolare di Milano has been collaborating with Ecolab, a social co-operative involved in the design and production of fashion accessories and merchandising. Ecolab was born in Milan's San Vittore Prison and involves people in detention and the disabled, in collaboration ecolab with the Employment Offices of the Province of Milan. The collaboration with BPM resulted in the creation of merchandise used in many of the Bank's promotional initiatives.
The attention that Banca Popolare di Milano has always had for the Third Sector is reflected in Faresolidale, a service reserved for the world of non-profit organisations; for more than a decade it has constantly developed its traditional relationship with the territory by creating a meeting point and point of exchange between non-profit and profit- making entities, i.e. associations and businesses, volunteers and donors. The service offered by Faresolidale has been the focus of participation in the Fund Raising Festival, an event dedicated to operators of non-profit sector which BPM sponsored for the third year running.
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Training and education In collaboration with the main universities in Lombardy, BPM gives young students the opportunity of internships and supports them in writing their thesis. Young people are given the chance to experience an organised working environment, applying and mastering what they have learnt in their studies and refining skills that can be useful in the world of employment, such as team work, willingness to listen and openness to interpersonal relationships.
Our contribution to education is represented by the opening to the public of the Historical Archive of Banca Popolare di Milano, with thesis-writers and researchers being the main beneficiaries.
In collaboration with the PattiChiari Consortium and the non-profit association Junior Achievement, BPM organised at the Bezzi Auditorium the Financial Education Week, an initiative that aims to give children the basic elements of economics. Between November and December it involved 8 schools for a total of about 400 middle school students. The educational content, the interactive setting and the ability of the bank experts to entertain children all contributed to the success of this initiative, as did the attention paid by the children, who were motivated by an environment different from that of school.
For the seventh year, “Keep an eye on me”, an innovative school diary, has been distributed in nearly 200 schools throughout Italy (totally free to schools thanks to advertising by local entities); this was particularly appreciated for the 32 pages that each school can customize by including information all about itself (training plan, school regulations and absence justification booklet). BPM participated in the project as exclusive sponsor for the banking sector, including in the diary sections dealing with banking and financial matters in a playful way, stimulating the interest of young people and their families.
Webank carried out an initiative called “La banca tra i banchi” (The bank among the benches, i.e. school desks), a social- educational project created to raise awareness among young people on matters of economics and finance, providing helpful tools to develop a conscious approach to money management. This initiative, during the 2009-2010 school year, involved high schools (Fourth and Fifth Grade) in four Italian regions: Lombardy, Piedmont, Veneto and Apulia. The bank among the benches promoted “Today, I count“, a scholarship aimed at all of the pupils at the schools involved, with the guidance and support of their teachers, who wrote an essay summarising the issues and topics covered during the lessons, i.e. savings in all its forms. The award ceremony was held at the BPM's Conference Hall in Via Massaua.
For the fourth year, Banca Akros was the promoter of the initiative entitled “Giovani di sana e robusta Costituzione” (Youngsters of sound and robust Constitution), a series of encounters to get to know the historical and ideological origins of the Italian Constitution, as well as the principles that it established. This project obtained patronage from the Offices of the Prime Minister and the President of the Republic, the Lombardy Region, the Province of Milan and the Municipality of Milan.
1. The Bourbon Tunnel: this is a splendid underground tunnel made entirely of yellow Neapolitan tuff, located on the southern side of the city of Naples, which goes through Mount Echia. The tunnel, which was created for military purposes, met along its path the network of tunnels and cisterns linked to the ancient Carmignano aqueduct (1627-1629), which served the city of Naples. BPM contributed towards the installation of the lighting system, making this extraordinary underground world accessible to the general public
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Sustainability and environment New activities and initiatives were added in 2010, in addition to those performed for years, in line with the attention and awareness to environmental issues that we are currently developing.
Maintenance and improvement work continued on the park in Via Massaua which surrounds the Bezzi Services Centre. The park is open not only to BPM employees, but also to residents of the district. This greenery is much appreciated by the local inhabitants who frequent it. The park has also become a meeting place for the “PEDIBUS - the school bus that goes on foot“ project, the initiative of the Municipality of Milan which allows children to walk to school, accompanied by volunteers.
We have strengthened our partnership with Parco Nord Milano, where in 2010 we completed the reforestation of the “BPM Wood“ in Via Cesari. This was a result of compensating the CO2 emissions of certain sectors of the Bank and of the BPM Training Centre which, in its role as a hub for dissemination and cultural exchange, becomes a vehicle for communication and promotion of environmentally friendly behaviour.
To create value for the communities that live in the area, we also produced a series of initiatives in collaboration with the Park: sponsorship of park maps; sponsorship of the competition sponsored by the Lombardy Region "In the parks for a year", reserved for schools in 5 Lombardy, giving to the three winning classes a stay in a protected area of the region; participation with the Geodesic Dome at the Biodiversity Festival in June, and at PINC (Parco in Comune or Park in the City), in September. On the latter occasion, the Geodesic Dome - built with environmentally sustainable materials - hosted the activities of Microlab (science labs designed to bring kids closer to nature) and Remade in Italy (an association that promotes recycled products "made in Italy"), which certified the sustainability of the project and presented some products made with recycled materials.
All materials used for promotion activities are made in Italy and comply with all labour regulations and the company's policy to reduce our environmental footprint. During visits to the library organised as part of the Literature Festival in Mantua, we distributed a notebook and a pencil made of recycled and environmentally friendly materials.
As also mentioned in the chapter on the Environment, Cassa di Risparmio di Alessandria carried out a project to offset CO2 emissions by planting over 1,800 trees in the Pontestura area of the Po and Orba River Park.
2. The Park in Via Massaua: view of the park beside to the BPM Services Centre in Milan 3,4. Financial Education Week: an initiative aimed at middle and high school students 5. Biodiversity Festival: event led by Milan's North Park Consortium where the "BPM Geodesic Dome" was installed, a symbol of BPM's commitment to the environment
109 110 Art and culture We make every effort to enhance the artistic heritage of the territory in which we operate by contributing to its preservation and supporting initiatives to promote it.
During the year, BPM organised or took part in numerous initiatives: Invito a Palazzo - public opening of offices in Milan and Florence as part of the event promoted by ABI. Museum of Design in Triennale – “Impara l'arte e mettila da parte – agosto gratis in Triennale” campaign for free entry to the Triennale museum in August and a 50% discount for BPM customers for the third edition of the “Che cosa è il Design Italiano? Quali cose siamo“ exhibition. Pinacoteca di Brera - special nocturnal opening during the holiday of Sant’Ambrogio, on 7 December, with free entry thanks to the BPM's contribution. Church of S. Maurizio in Milan - restoration of frescoes by Bernardino Luini. Free opening to the public was possible thanks to the help of Touring Club volunteers.
BPM and Banca Popolare di Mantova worked together with Festivaletteratura, an annual rendezvous for book lovers as well as the inquisitive: five days of meetings with authors, shows and concerts during which culture and reading become entertainment. Italian writers and poets, internationally known writers and most recent generation of writers take part at literary events - the key attraction - and are interviewed by famous authors, journalists and experts. Special attention is paid to children, who have their own section of the Festival with meetings, workshops and entertainment. Festivaletteratura also offers guided tours to historical and cultural heritage of the city, theatrical moments, musical performances, seminars on art, architecture, design and illustrated books.
Given that art can also represent an important vehicle in the relationship with customers, since 2001 the open space on the top floor of Banca Akros' head office has been set aside for contemporary art exhibitions and events. In 2010 the main event was the “Ex Novo” exhibition, which is part of an ambitious project to promote and support the contemporary art world.
Other initiatives For several years, BPM has taken part in an important social housing project in Lombardy. In this sense, the Bank forms part of the “Abitare Sociale 1“ Fund, which involves the realisation of various initiatives in the city and the region. In particular, the one in Crema and those in Milan's Via Cenni, Via Figino and Via Ferrari, for a total of about 540 apartments, 10 shops and dormitories for about 220 beds, as well as various services such as parking lots and common areas.
During the 2010-2011 edition, the catalogue of the “Counting on You” loyalty program enriched the range of awards called “Around us“ with projects and gifts to non-profit and environmental organisations. Banca Popolare di Milano supported the “Operation Hunger“ campaign sponsored by ActionAid and continued the collaboration with AzzeroCO2. Both initiatives were made possible thanks to the "Counting on You" loyalty program which gave the opportunity, also to customers, to transform the points accumulated through the use of banking services to support the world of non-profit organisations and environmental initiatives. In addition, all communication materials dedicated to the programme were offset by planting new trees in the BPM Wood.
Within NASKO, the initiative of the Lombardy Region in support of women in financial difficulty who decide not to interrupt their pregnancy, BPM made available free of charge the prepaid cards on which 250 euro donated by the Region is loaded each month (for up to 18 months).
San Maurizio al Monastero Maggiore: one of the oldest and most distinguished artistic and architectural monuments of Milan. The number of frescoes in this ancient Benedictine monastery, which was suppressed in 1798, are of exceptional importance for 16th Century Lombard painting. San Maurizio can claim works by Bernardino Luini, his sons Aurelio, Giovan Pietro and Evangelista, Piazza di Lodi, Simone Peterzano and other masters. The restoration work, sponsored by Banca Popolare di Milano, began in 1986 under the direction of the Superintendence for Artistic and Historical Heritage of Milan
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Conferences Again in 2010 we organised and hosted numerous conferences and public meetings in the historic Sala delle Colonne of the head office in Piazza Meda and in the auditorium of the Services Centre in Via Bezzi. The halls are used for activities organised internally by the BPM Group, rented out for events and meetings or made available for the activities of various associations. In 2010 BPM hosted more than 11,000 people during the 138 conferences held on various issues: from economics to finance, from health to education, from social to private events. We would mention the following in particular: 30 years of Energy: conference to commemorate the 30th anniversary of the Energy magazine, which was attended by representatives of Italy's political, economic and industrial world. The convention was a moment for reflection on the key evolutionary dynamics in the world of energy. Knowledge and flavours: a cycle of conferences on health and nutrition, with the participation of prestigious specialists and experts. The project, sponsored by the Ministry of Agriculture, Food and Forestry and other institutional partners, was launched in 2005 by a desire to combine knowledge of the cultural, scientific and culinary aspects of food with a taste for nutritional awareness. The aim is to allow the public to satisfy a desire to improve their lifestyle in a targeted, specific and consistent way, through participation in the various activities on offer. School and Parenting: a series of meetings for parents on school psychology - with participation extended to BPM's employees - that fall into a three-year listening project called "Lo sportello delle domande” (The question window). The project includes 160 hours per year with the intervention of a psychologist, split between training sessions for parents, windows for teachers, parents and pupils, with the aim of raising schools' efficiency in achieving their educational goals, encouraging the promotion of wellness at school. Savings Forum: organised by Anima SGR for its customers, the Forum aims to evaluate and analyse the performance of the national and global economy with the opinion of Italian and international experts who have reviewed the prospects of financial markets and the best investment opportunities. Exhibition by ACRA - Associazione di Cooperazione Rurale in Africa e America Latina: an exhibition held in the tunnel that links the Bezzi offices to the canteen, in collaboration with Faresolidale. The purpose of the exhibition was to describe llama breeding on the Potosi Plateau in Bolivia, traditionally the only real wealth of the region.
Conferences Hosted by Bpm Sala delle Colonne Bezzi Services Centre Conferences organised by BPM 4 28 Conferences organised by third parties 58 48* Total 62 76
* including meetings organised by other Group companies.
Banca Akros hosted the “Beyond the Global Crisis“ conference, which was attended by 200 guests and saw the intervention of Paul Krugman, Nobel Prize for Economics in 2008.
1. BPM's Sala delle Colonne: a splendid internal courtyard enclosed by modern glass screens made it possible to create this attractive hall that houses important events, conferences and public meetings in BPM's head office
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Group employees often participate as speakers at meetings or events; among others, the talk at the Politecnico of Milan on "CSR in BPM" and participation at the conference entitled "Diversity Management: understanding, managing and valuing diversity in the workplace"; the presence of Banca di Legnano at the “Fotovoltaico: conviene?” (Is FV worthwhile?) conference held in July at Villa Corvini in Parabiago, where a number of employees took part as speakers on financial aspects.
Media Communication through the media is a tool for the BPM Group to keep in touch with its various stakeholders. The objective of this activity is to spread the news of initiatives that are of particular importance for strategic and operating purposes, as well as information on commercial policies and financial matters. 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, as well as its financial statements and presentations of its results. They also manage the planning, buying and optimisation of the advertising space for communication and marketing campaigns, taking a strategic approach.
All Group companies have specific structures that handle media relations. As regards the Parent Company, the press office, which reports to the External Relations Department, deals with the media, selects and transmits the flow of information to the media and external communication activities of the Bank and the Group. The purpose of this activity is to disseminate corporate values and policies by means of an ongoing relationship with management, identifying the various targets (i.e. opinion leaders, journalists, etc.). To do this, the press office builds and maintains relationships with the media and develops monitoring activities. In addition, there is a need to define the tools and preparatory actions to govern image and reputation, sometimes with the assistance of external providers.
Over time, daily contact with the media has built up valuable relationships based on trust. For example, economic and financial journalists consider Webank an excellent point of reference for issues related to banking and online trading. For this reason, in 2010 Webank appeared in national and industry publications not only through feature articles, but also as part of an overview of the scenario, positioning itself as one of the market leaders in online banking.
Thanks to their strong territorial presence, the Group's commercial banks frequently collaborate with the local media. Cassa di Risparmio di Alessandra, for example, continues to make the television programmes “Il Borsino“ (broadcast daily on local TV networks) and “Oggi per Domani“ (a weekly programme). Television and radio spots promoting the Bank and its products went on the air every day in prime time.
Banca Popolare di Mantova is working with the broadcaster TeleMantova: every day from June to December, a short spot for the bank opened and closed the programme “Rubrica economica Radiocor il Sole24ore“, comprehensive news from the world of finance and economics.
The policy and general commitments of Banca Akros in terms of communication are intended to guide, supervise and coordinate the Bank's communications with the media (including public relations agencies); to manage reputational risk from the communication point of view; to convey the Bank's values and characteristics, such as professionalism and confidentiality.
2,3. The Bezzi Auditorium: detail of the interior of the "Plenary" room on the first floor of the highly modern offices of the BPM Services Centre, in Massaua 6, Milan. View of the exterior of the hall featuring a entirely glass wall with view over the BPM park
113 Environmental report of the BPM Group Milan, Milan's North Park.
114 Environmental report of the BPM Group Milan, Milan's North Park.
115 Lombardy. Milan, BPM Bezzi 1 Photo: photovoltaic (PV) system, panoramic view of the new solar panels covering the entire roof surface of one of the buildings of the BPM "Bezzi 1" Services Centre in Milan. The system provides all of the energy needed to power the classrooms used for training purposes.
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Environmental Report The slogan that has appeared on the windows of the BPM Group's branches since 2010 is "Essere al verde da noi è un valore” (Being in the green (the Italian equivalent of being in the red) with us is a value). It is not just a sales promotion, but the representation of a fundamental value: respect for the environment and for the territory.
In order to translate this principle into action, in the 2010-2012 Strategic Plan we have introduced a programme of measures to reduce consumption and improve the company's sources of supply, as well as to support the adoption of sustainability initiatives from an environmental perspective through our commercial policy.
In addition, there were numerous initiatives to raise awareness and promote responsible attitudes in the territory served by the BPM Group. We believe that the welfare and development that can result from our activities should not be separated from attention to environmental impacts.
The question of environmental sustainability for a bank is very complex as it involves internal processes and behaviours, goods and services purchased from third parties, and the services that the bank provides to its own customers. In the first case we are in the field of direct impact on the environment, in other cases we speak of indirect impacts.
We are aware that the road to sustainability is extremely long, but we would like emphasise that in 2010 we started a coordinated programme of initiatives whose implementation will extend far beyond the horizon of the Plan.
1. The Bezzi 1 Training Centre
ID CARD (figures at the end of 2010) Heat Consumption 12.75 m3/m2 Electricity Consumption 139 Kwh/m2 Water 372,423 m3 Paper 2,034 tonnes Waste 1,876 tonnes Corporate Mobility 3,971,000 Km CO2 compensation c. 3,000 trees planted
Figures relating to Banca Popolare di Milano, Banca di Legnano, Cassa di Risparmio di Alessandria, Banca Popolare di Mantova, Webank, Banca Akros, ProFamily and Ge.Se.So.
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BPM Suppliers group BPM Raw materials Customer group Member and Shareholders
Environment ! To make our actions "accountable", i.e. measurable, we have improved the Figures and ratios: Environment accounting system that allows us to monitor the main items of consumption involved in our activities and related costs and to evaluate trends based on indicators that take into account any changes that have taken place in activities and buildings. Energy
Energy consumption is an extremely important factor in our environmental impact, as well as being a significant cost item. essere al verde da noi è un valore. In 2010 the Group's supply of electricity produced exclusively from renewable source continued. per un ambiente migliore. Consumption amounted to 139 KWh/sqm with a slight increase on 2009, when consumption per square metre was 138 KWh. This increase can be explained, at least in part, by the high temperatures reached during the summer of 2010, which caused an increased use of air conditioning.
2010 marked a turning point regarding the energy produced by our PV systems. A third PV system was completed at BPM and a fourth one was approved by Banca Akros. Unlike the previous two systems installed in 2008, which are both small (one in Foggia that lights the neon signs of the main branch and the other in Milan to light the park surrounding the Services Centre in Via Bezzi), these are able to produce enough energy for entire sectors of the Banks.
In particular, BPM's system on the roof of the Services Centre produces around 98,000 kWh per year and is able to provide enough energy for cover the consumption of the Training Centre. A technical project of great value, both for the size of the system and for its location in an ideal place to educate colleagues and to disseminate the principles in which the Bank believes, including attention and sensitivity to environmental issues.
The system installed by Banca Akros became operational from April 2011 and produces around 55,000 kWh per year, corresponding to the electricity needs of an entire floor of the offices in Viale Eginardo.
Paper Paper is one of the main items of consumption in our office and communication activities. At the end of 2010 the BPM Group's total consumption of paper came to just over 2,000 tonnes, about 200 tonnes less than in 2009 (-9%). This decrease is partly attributable to changes in the scope of consolidation, particularly the exclusion of Anima SGR whose consumption was partly offset by the newly formed ProFamily.
1. National advertising campaign: this is the poster that appeared in 2010 in branch windows to confirm the social and environmental commitment of the BPM Group
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The rationalisation of paper communication by all of the Group's commercial banks had a significant impact on this decrease in 2010. The following measures were taken in particular: the elimination of printing for all transactions where issuing a printed document is not required by law; continuation of the awareness campaign for customers to replace paper-based material with online communications. At the end of 2010, 43% of the current accounts at the Group's commercial banks permit online delivery of documents instead of paper ones. At the end of 2009 this figure was about 30%; rationalization of deliveries of paper material by grouping together various types of communication (bank statement, mortgage situation, etc.).
During 2010, as part of the rationalization of organisational processes, special attention was paid to the elimination of paper printouts.
In order to streamline information processes and systems, but mainly to reduce the use of paper where the information can be accessible in electronic form, numerous paper printouts were eliminated with savings expected to be around 60 tonnes per year. We will be able to account for the benefits of these interventions in 2011, because many eliminations became operational in the latter part of 2010. Further eliminations were also planned during 2011 with expected paper savings of around 10 tonnes per year.
Quality of paper The A4 and A3 paper for printers and copiers is produced with cellulose from a processing chain that is controlled and subjected to treatments that reduce the environmental impact. In many cases, we purchased paper certified by the FSC (Forest Stewardship Council).
All advertising and promotion material is now printed on FSC-certified paper.
Despite the decrease, our paper consumption continues to be high and it is clear that there is still room for improvement. A number of interventions have been planned for 2011. In addition to these reductions, there are also plans to eliminate printed versions of certain internal communications, to continue the campaign to The FSC brand (Forest Stewardship Council) persuade customers to receive documents online and to launch an internal communication plan to raise staff identifies products containing wood from the forests managed awareness about the responsible use of paper. in a correct and responsible way in accordance with tight environmental, social and economic standards (www.fsc-italia.it).
Paper consumption* 2010** 2009 Total paper (t) 2,034 2,230 A4 paper (Kg) 577,366 593,232 A4 paper per employee (Kg) 70.17 70.25
** Figures estimated on the basis of purchase orders ** Figures for the commercial banks, Banca Akros and ProFamily in 2010; Commercial banks, Banca Akros and Anima SGR in 2009
2. PV system: panoramic view of the new solar panels covering the entire roof surface of one of the buildings of the BPM "Bezzi 1" Services Centre in Milan. The system provides all of the energy needed to power the classrooms used for training purposes
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Water
Water is a resource of primary importance for the life of the planet and has long been mistakenly regarded 2 as inexhaustible. Today, water is bound to become an element of considerable importance for any business.
The Group's water consumption is mainly for health and hygiene purposes and the resulting waste water goes directly into the public sewer, as the quality and quantity are similar to domestic waste.
Water consumption in 2010 has been estimated as some important equalisations still have to be received before the final figures can be calculated.
3
4
1,3,4. BI.GI. Farm: located in the heart of the Po Valley, near Brescia. It is a stud farm authorised by the Ministry of Agriculture and is a leader in the birth and growth of foals; it also acts as a shelter for horses in need of rest after taking part in competitive sports. BI.GI has been a customer of BPM since the early '90s 2. Internal communication campaign: poster created during the installation of water dispensers and hung in BPM's offices
120 5 6
Waste
The production of waste is without doubt one of the elements that most affect the quality of our environment.
In 2010 the BPM Group produced 1,876 tonnes of waste, more than 80% of it paper. The total amount of waste was higher than the previous year (1,556 tonnes) partly because of the disposal of the documentary archives of Banca 2000, now merged, which were kept in storage for the legally required period, and partly as a result of restructuring and combining branches.
All waste paper is disposed of in a controlled way and recycled by paper mills.
Another important waste item consists of plastic. Group companies have made available numerous collection points to facilitate and encourage the recycling of plastic waste, collecting a total of around 20 tonnes in 2010.
Reducing waste is a matter of fundamental importance to contain the environmental impact of our activities and this can also be achieved through a change of habits in ones style of consumption.
For this reason and with the objective of reducing the consumption of plastic, a campaign entitled "L’acqua del rubinetto è buona" (tap water is good) was launched in 2010. In October special taps were installed in the Piazza Meda and Viale Bezzi offices that are able to filter tap water and ensure that it is fit for consumption without using plastic bottles and without the environmental costs involved in the production, storage and transport of the water. In only three months, this initiative reduced the number of plastic bottles sold by more than 16,000.
Number of bottles of water sold* 2010 2009 Saving Viale Bezzi offices 222,136 225,985 -3,849 Piazza Meda offices 129,406 141,978 -12,572 Total 351,542 367,963 -16,421
Figures relating to Banca Popolare di Milano, Webank and ProFamily. * Source: Argenta Group, provider of water bottles
5,6. Vesti Solidale: non-profit social cooperative based in Cinisello Balsamo, which since 1998 provides environmental and social services to individuals, focusing on employment opportunities for the disadvantaged. It has been a customer of BPM since the end of the '90s
121 Zero CO2 emissions
Changing habits and, more generally, achieving a broader awareness about environmental issues, are processes that require several years, whereas reducing emissions is a priority that cannot be postponed.
For this reason, in 2010, we continued to offset BPM's CO2 emissions and began to do the same for Cassa di Risparmio di Alessandria.
Offsetting is not only important in terms of the reforestation needed to compensate for emissions, it is also a process of lifestyle analysis and responsibilisation. The collection of figures on the activities that need to be offset becomes in itself a way of generating information and greater awareness on the part of employees.
During 2010, Banca Popolare di Milano offset all of its emissions in certain activities and areas: the 2010 Members' Meeting, the Training Centre, some offices of the Milan head office and 15 branches surrounding Milan's North Park. The result was the planting of 700 trees, in addition to the 400 planted in 2009, in Milan's North Park, in the Via Cesari wood and in the Grugnotorto area, a footbridge that connects the northern areas of the park with neighbouring districts. The new wood is made up of trees and shrubs selected to enhance the environmental value of the park and increase its biodiversity.
Offsetting by Cassa di Risparmio di Alessandria, which has chosen to compensate all of its CO2 emissions, involved a reforestation project in Piedmont. In particular, a wood of native species was planted (a total of more than 1,800 trees, including white poplars, elms, maples, cherry, hawthorn and hazel) on a dozen acres of wasteland in the Po and Orba River Park in the Pontestura area west of Casale Monferrato.
All our offsetting operations were planned and implemented in full respect for the biodiversity of the area of reforestation, in partnership with AzzeroCO2, a company founded by Legambiente, Ambiente Italia and Kyoto Club.
122 1
Green finance
Building a sustainable future cannot be realised without reconciling economic growth and innovation with the environment. In this context, a bank can play an important role in funding or investing in projects that generate positive environmental side-effects or by providing solutions that meet the various needs of those who choose to invest in a cleaner world.
Our efforts focus mainly on the question of energy, where our commitment has been consistent with national and EU energy policies that aim to achieve significant and progressive reductions in CO2 emissions as set for EU countries. In particular, we operated in the following areas:
Project financing: the Group took part in projects mainly in the field of renewable energy sources, namely in PV, biogas and wind power, both in a consortium with other lenders and as the sole funder, acting as a real partner in these initiatives. Investments in closed-end funds supporting strategic projects for leading Italian companies in the renewable energy sector. Products for individuals and businesses, including medium-to long-term leasing and personal loans at advantageous rates. In particular, we offered the following products to our customers:
Ecology Package: Online funding (dedicated to consumers, businesses and condominiums) to support targeted investments to improve energy efficiency of homes, facilities and buildings (boiler replacement, reduction of heat loss with new window frames or roof insulation), for installation of renewable energy systems and the purchase of vehicles with reduced environmental impact (electric, natural gas or LPG).
Photovoltaic Loan: a product for individuals, businesses or apartment buildings that offers the possibility to benefit through the "Conto Energia" from incentives to boost the production of electricity by installing new PV systems, or the total renovation or upgrading of a pre-existing system.
2010 2009 PHOTOVOLTAIC LOAN Customers financed 1,303 251 Loans issued (in thousands of euro) 183,960 38,163 ECOLOGY PACKAGE Customers financed 182 26 Loans issued (in thousands of euro) 19,603 967
1. A panoramic view of Milan's North Park
123 1 2
Within project financing, particular interest has been given to biogas plants, normally of less than 1 MW, which allow the production of electricity using manure in combination with other agricultural waste. These initiatives have a number of interesting aspects for a bank that pays particular attention to the territory, as BPM does, such as:
the involvement of local farms and livestock, which are indispensable for the collection and delivery of the biomass needed to fuel the plant; the predominant localization of initiatives in areas of extensive farming and breeding, mainly in the Po Valley and the northern regions of Italy in general;
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Centrale di Mobilità BPM, in partnership with Legambiente, contributed to the creation of the “Centrale di Mobilità”, a service centre accessible to those looking for personalised transport information and solutions.
Protected areas The Ares co-operative, set up by employees of Banca Popolare di Milano, has rented an area in the municipality of Gudo Gambaredo in Milan's South Agricultural Park, an area of considerable natural beauty and historical and architectural heritage, which is one of the largest peri-urban agricultural parks in Europe. In this area there is the "Pasturine di Sotto" lake where fishing is occasionally allowed.
1. Detail of the Geodesic Dome installed in Milan's North Park during the Biodiversity Festival, open during the evening as well. 2. A panoramic view of Milan's North Park 3. National advertising campaign to finance "green" projects
124 3
Geodesic Dome We took part in events on sustainability through our communication initiatives, such as the installation of a "Geodesic Dome"1 whose architectural features and energy efficiency make it a symbol of an "environmentally responsible way". The Dome was installed not only at the 2010 Members' Meeting, but also for:
SolarExpo Verona: an international fair on renewable energy
Biodiversity Festival: an event sponsored by Milan's North Park, together with numerous other organisations and associations with meetings and conferences, theatre and film reviews, nature tours, art and educational exhibitions, games and creative workshops, samples and tastings.
PinC: an itinerant event sponsored by the Municipality of Milan in city parks
Ecomondo: International Fair of Material & Energy Recovery and Sustainable Development
International Festival of the Environment: an event on the issues of environmental protection
We also took part in the "M’illumino di meno" (I illuminate myself less) initiative and the CRES.CO. project coordinated by Sodalitas, aimed at creating a partnership between businesses, citizens and local institutions for the implementation of environmental initiatives.
1The main advantage of a dome-shaped building is that, with the same interior space, a dome has an outer surface that is 38% less than that of an ordinary rectangular building. This means that much less energy is needed to heat or cool it. In addition, the larger the dome, the greater its energy efficiency, as doubling the diameter increases the volume eightfold, while the surface area only increases fourfold.
4. Solarexpo: BPM's exhibition stand
125 Figures and ratios: Customers
NB (this applies to all of the tables): 1. Common customers are shown under each bank 2. Unlike in the past, the numbers include so-called "anomalous" customers (e.g. doubtful and protested) and employees or ex-employees/ pensioners who only have a single account at the windows reserved for the staff.
Total number of customers Total Individuals Companies (+/-) % (+/-) % Commercial banks, of which: 1,376,596 1,219,457 88.6% 157,139 11.4% Banca di Legnano 161,904 139,368 86.1% 22,536 13.9% Cassa di Risparmio di Alessandria 99,936 84,534 84.6% 15,402 15.4% Banca Popolare di Mantova 5,593 3,607 64.5% 1,986 35.5% Webank (*) 97,338 96,599 99.2% 739 0.8% Affiliates with specialist skills, of which: 3,655 2,264 61.9% 1,391 38.1% Banca Akros 3,655 2,264 61.9% 1,391 38.1% Total 1,380,251 1,221,721 88.5% 158,530 11.5%
(*) The figure includes 30,000 customers deriving from the merger with WeTrade.
INDIVIDUAL CUSTOMERS % Breakdown by gender Women Men Commercial banks, of which: 50.3% 49.7% Banca Popolare di Milano 50.6% 49.4% Banca di Legnano 51.7% 48.3% Cassa di Risparmio di Alessandria 51.3% 48.7% Banca Popolare di Mantova 45.2% 54.8% Webank 41.8% 58.2% Affiliates with specialist skills, of which: 46.0% 54.0% Banca Akros 46.0% 54.0% Total 50.3% 49.7%
Average age and % distribution by age bracket Below 18 From 19 to From 26 to From 46 to Over 65 Average age years 25 years old 45 years old 65 years old years Commercial banks, of which: 53.3 1.1% 3.3% 32.6% 36.7% 26.4% Banca Popolare di Milano 54.0 1.3% 3.1% 31.0% 36.9% 27.8% Banca di Legnano 53.8 0.7% 3.5% 31.1% 37.1% 27.6% Cassa di Risparmio di Alessandria 55.5 1.4% 2.4% 27.6% 37.6% 31.0% Banca Popolare di Mantova 46.8 3.8% 4.4% 40.7% 37.6% 13.5% Webank 44.6 0.2% 5.4% 52.8% 33.4% 8.2% Affiliates with specialist skills, of which: 63.0 0.2% 0.9% 21.8% 47.7% 29.4% Banca Akros 63.0 0.2% 0.9% 21.8% 47.7% 29.4% Total 53.3 1.1% 3.3% 32.5% 36.7% 26.4%
126 Figures and ratios: Customers
Ave. age Average age and % distribution by age bracket <1 Year 1-5 Years 6-10 Years Over 10 and period years of service Commercial banks, of which: 14.4 7.8% 12.5% 13.2% 66.6% Banca Popolare di Milano 15.4 3.2% 10.6% 13.2% 73.0% Banca di Legnano 15.4 4.0% 12.9% 13.2% 70.0% Cassa di Risparmio di Alessandria 15.8 5.3% 11.4% 12.8% 70.6% Banca Popolare di Mantova 3.6 29.1% 37.5% 31.4% 2.0% Webank 3.5 57.4% 29.2% 12.9% 0.5% Affiliates with specialist skills, of which: 6.0 32.8% 20.3% 26.7% 20.3% Banca Akros 6.0 32.8% 20.3% 26.7% 20.3% Total 14.4 7.8% 12.5% 13.2% 66.5%
Foreign customers Total Eastern Rest of Africa Asia South Rest of the Europe Europe America world Commercial banks, of which: 45,207 34.2% 6.1% 19.9% 21.2% 15.7% 2.8% Banca Popolare di Milano 39,688 33.3% 5.3% 20.7% 22.0% 16.1% 2.6% Banca di Legnano 3,346 41.1% 5.8% 16.6% 19.2% 13.5% 3.9% Cassa di Risparmio di Alessandria 599 56.3% 8.5% 16.5% 8.2% 8.8% 1.7% Banca Popolare di Mantova 239 31.0% 8.8% 21.3% 26.4% 10.5% 2.1% Webank (*) 1,335 34.6% 27.9% 6.8% 10.6% 13.7% 6.4% Affiliates with specialist skills, of which: 24 0.0% 53.8% 0.0% 7.7% 0.0% 38.5% Banca Akros 24 0.0% 53.8% 0.0% 7.7% 0.0% 38.5% Total 45,231 34.2% 6.1% 19.9% 21.2% 15.7% 2.8%
(*) WeTrade customers are not included
CORPORATE CUSTOMERS % Breakdown by size Small Medium-sized Large Other (*) businesses enterprises enterprises Commercial banks, of which: 90.9% 8.4% 0.3% 0.5% Banca Popolare di Milano 90.3% 8.8% 0.3% 0.5% Banca di Legnano 92.2% 7.5% 0.1% 0.2% Cassa di Risparmio di Alessandria 93.0% 6.1% 0.1% 0.8% Banca Popolare di Mantova 86.0% 13.3% 0.3% 0.5% WeBank 99.5% 0.1% 0.0% 0.3%
(*) This includes Governments and financial institutions
127 Figures and ratios: Customers
Small businesses: % distribution by economic sector Total Agriculture Industry Skilled trades Services Commerce Other Commercial banks, of which: 142,771 3.3% 14.5% 20.8% 24.6% 14.5% 22.3% Banca Popolare di Milano 105,225 2.8% 15.1% 20.2% 25.9% 14.4% 21.6% Banca di Legnano 20,783 0.6% 13.8% 24.5% 20.6% 13.4% 27.1% Cassa di Risparmio di Alessandria 14,319 10.1% 11.3% 20.0% 19.0% 16.2% 23.3% Banca Popolare di Mantova 1,708 13.2% 14.8% 21.8% 22.9% 19.6% 7.7% WeBank 736 0.3% 4.2% 10.6% 70.4% 13.4% 1.0%
Length of relationship and % distribution by age bracket Ave. age and < 1 Year 1-5 Years 6-10 Years Over 10 period of years service Commercial banks, of which: 9.2 9.9% 28.0% 22.0% 40.3% Banca Popolare di Milano 9.2 9.4% 27.3% 21.7% 41.6% Banca di Legnano 9.2 10.1% 29.8% 21.9% 38.2% Cassa di Risparmio di Alessandria 9.8 10.8% 26.1% 23.3% 39.7% Banca Popolare di Mantova 3.7 21.8% 45.2% 31.7% 1.4% WeBank 3.2 31.7% 69.0% 13.3% 5.5% Affiliates with specialist skills, of which: 7. 0 23.0% 18.0% 28.0% 31.0% Banca Akros 7. 0 23.0% 18.0% 28.0% 31.0% Total 9.2 10.0% 27.9% 22.0% 40.1%
LISTENING Customer satisfaction results (NSI*) Individuals Small Private SMEs Businesses banking customers Commercial banks, of which: 54 44 Banca Popolare di Milano 53 42 48 55 Banca di Legnano 60 51 Cassa di Risparmio di Alessandria 52 48 Banca Popolare di Mantova 62 50
* The NSI (Net Satisfaction Indicator) is calculated as the difference between the percentage of customers most satisfied (which voted 8 to 10) and those with the lowest score for satisfaction (from 1 to 5)
128 Figures and ratios: Customers
HANDLING OF COMPLAINTS Type of complaints received Total Current Credit Saving Other accounts and services Commercial banks, of which: 2,859 1,505 351 695 308 Banca Popolare di Milano 2,088 1,173 262 447 206 Banca di Legnano 110 27 18 22 43 Cassa di Risparmio di Alessandria 121 68 25 22 6 Banca Popolare di Mantova 9 3 2 4 0 WeBank 531 234 44 200 53 Affiliates with specialist skills, of which: 0 0 0 0 0 Banca Akros 0 0 0 0 0 Total 2,859 1,505 351 695 308
Complaints handled Total Accepted Partially Rejected accepted Commercial banks, of which: 2,303 711 307 1,285 Banca Popolare di Milano 2,074 612 297 1,165 Banca di Legnano 110 45 6 59 Cassa di Risparmio di Alessandria 119 54 4 61 Banca Popolare di Mantova 8 2 0 6 WeBank 316 135 36 145
Ethical fund customers 2010 2009 2008 Commercial banks, of which: 4,736 3,232 2,411 Banca Popolare di Milano 3,087 2,522 2,057 Banca di Legnano 934 446 333 Cassa di Risparmio di Alessandria 471 67 21 Banca Popolare di Mantova 21 15 - WeBank 223 182 -
129 Figures and ratios: Customers
Contribution of the BPM Group to assets managed by Etica SGR (in millions of euro) Assets under management 2010 2009 2008 Etica sgr 442.1 3 17. 4 229.2 of which BPM Group 81.7 57.3 40.7 (Group %) 18.5% 18.0% 17.8%
(1) The whole three-year period does not include the share of equity of Anima SGR
ONLINE CHANNELS Total Individuals Companies No. of online customers 530,659 437,758 92,901 No. of new customers 110,466 90,262 20,204 Total visits per year 33,883,893 20,410,149 13,473,744 Active customers at end of year 429,786 338,216 91,570 Active customers as percentage of total 81.0% 77.3% 98.6% Requests for information 56,817,977 37,235,383 19,582,594 (current account balance, movements, outcome of instructions, etc) No. of banking instructions 19,652,561 3,619,870 16,032,691 Online trading and fund transactions 520,495 520,495 -
130 Figures and ratios: Members and shareholders
Composition of share capital at 31 December 2010 Total Members Non- shareholders members No. of individuals 95,054 51,634 43,420 No. of legal entities 2,045 448 1,597 Total 97,099 52,082 45,017
Individuals: Women 36,082 22,521 13,561 Men 58,972 29,113 29,859 Average age 49 52 Average period (years) of enrolment in the Members' Register 28 ---
Composition of share capital at 31 December 2010 Total shareholders of which members of which non-member shareholders Number of Shares Number of Shares Number of Shares shareholders owned members owned non-member owned shareholders BPM employees 1 8,175 16,003,074 7,404 15,863,015 771 140,059 Group employees 1 533 553,126 471 501,606 62 51,520 Customers 2 40,424 66,879,372 31,603 52,768,206 8,821 14,111,166 Institutional investors 3 216 173,013,129 5 1,762,729 211 171,250,400 Large Members/Shareholders 4 80 32,783,637 32 7,946,893 48 24,836,744 Strategic partners 5 15 22,773,295 11 16,268,660 4 6,504,635 Other 47,656 103,049,562 12,556 21,902,917 35,100 81,146,645 Total 97,099 415,055,195 52,082 117,014,026 45,017 298,041,169
1 Including children that are minors 2 Individuals and legal entities not already included in other categories 3 Qualified operators (insurance companies, banks, trust companies etc.) and UCITS (funds, pension funds and Sicavs) 4 Holders of at least 100,000 shares, not including institutional investors 4 Includes 4 Partner Members belonging to the CM-CIC Group, which had not applied to become members as of 31 December 2010.
Composition of foreign shareholders 2010 2009 2008 Number of Shares Number of Shares Number of Shares shareholders owned shareholders owned shareholders owned Funds 84 35,445,092 90 36,986,373 63 32,072,348 Pension funds 17 6,118,792 32 11,378,409 30 9,619,888 Other qualified operators 79 92,625,769 80 84,175,364 76 84,026,485 Total 180 134,189,653 202 132,540,146 169 125,718,721
131 Figures and ratios: Members and shareholders
Geographical distribution of members and shareholders at 31 December 2010 Total shareholders of which members of which non-member shareholders Number of Shares Number of Shares Number of Shares shareholders owned members owned non-member owned shareholders Milan and Province of Milan 42,799 108,243,827 30,822 58,758,888 11,977 49,484,939 Lombardy 18,346 51,161,311 10,378 19,844,627 7, 9 6 8 31,316,684 Lazio 5,523 9,931,230 2,866 3,034,877 2,657 6,896,353 Apulia 2,213 3,426,737 1,227 1,598,981 986 1,827,756 Emilia Romagna 8,441 20,462,765 3,264 9,805,771 5,177 10,656,994 Piedmont 5,032 13,379,554 1,416 4,797,699 3,616 8,581,855 Other regions and abroad 14,745 208,449,771 2,109 19,173,183 12,636 189,276,588 Total 97,099 415,055,195 52,082 117,014,026 45,017 298,041,169
Number of membership admissions and cancellations/forfeitures 2010 2009 2008 Members admitted/readmitted 2,431 4,547 1,091 Applications rejected 0 0 1 Memberships cancelled * 981 1 22 Memberships forfeited ** 191 1,942 149
* For “breach of contractual obligations to the Bank" ** For "the complete loss of share ownership" or death.
Contacts with institutional investors and financial analysts 2010 2009 2008 Meetings with individual investors and small groups 315 791 319 BPM's Head Office 120 141 108 Banking conference & road show 195 149 211 Presentations to the financial community and conference calls 487 501 500 BPM's Head Office 266 324 240 Banking conference & road show 221 177 260 Total 802 1,292 819
132 Figures and ratios: Members and shareholders
Coverage by analysts at December 2010 Banca Imi Cheuvreux Intermonte RBS Banca Leonardo Citi KBW Santander Bernstein Deutsche Bank Macquarie Research UBS Boa Merrill Lynch Equita Sim Mediobanca Unicredit Centrobanca Goldman Sachs Morgan Stanley Centrosim HSBC Nomura
Rating at the end of 2010 Long-term Short-term Outlook Date of last debt debt review Rating agencies Moody's A1 P-1 Stable 29-Jun-10 Fitch Ratings A - F2 Stable 28-May-10 Standard & Poor's A- A-2 Negative 15-Dec-10
Attendance at general meetings
24-Apr-10 25-Apr-09 13-Dec-08 19-Apr-09
In person (*) Proxy In person (*) Proxy In person (*) Proxy In person (*) Proxy BPM employees 936 42 2,815 741 810 70 997 41 Group employees 94 2 154 16 31 2 52 3 Minor children of BPM employees 264 0 888 0 235 0 337 0 Minor children of Group employees 7 0 10 0 1 0 2 0 Total employees 1,301 44 3,867 757 1,077 72 1,388 44 Total other members 678 601 2,436 2,964 670 693 762 721 Grand total 1,979 645 6,303 3,721 1, 747 765 2,150 765 Grand total 2,624 10,024 2,512 2,915
(*) Including the legal representatives of minor children
133 Figures and ratios: Personnel
Breakdown of personnel Total Employees Other personnel Commercial banks, of which: 8,095 7,926 169 Banca Popolare di Milano 6,386 6,336 50 Banca di Legnano 831 809 22 Cassa di Risparmio di Alessandria 581 560 21 Banca di Mantova 57 56 1 Webank 240 165 75 Affiliates with specialist skills, of which: 291 480 27 Banca Akros 291 277 14 ProFamily 79 72 7 Other companies 137 131 6 Total 8,386 8,406 196
The "system" figures relate to 2009 and were taken from the "Personnel Statistics" report prepared by ABI The following tables refer only to employees
Breakdown by structure Head office Network Commercial banks, of which: 29.5% 70.5% Banca Popolare di Milano 31.6% 68.4% Banca di Legnano 13.3% 86.7% Cassa di Risparmio di Alessandria 18.8% 81.3% Banca di Mantova 21.4% 78.6% Webank 70.3% 29.7% Affiliates with specialist skills, of which: 84.5% 15.5% Banca Akros 85.2% 14.8% ProFamily 81.9% 18.1%
Breakdown by gender Women Men Commercial banks, of which: 46.1% 53.9% Banca Popolare di Milano 46.7% 53.3% Banca di Legnano 35.8% 64.2% Cassa di Risparmio di Alessandria 54.5% 45.5% Banca di Mantova 44.6% 55.4% Webank 47.3% 52.7% Affiliates with specialist skills, of which: 34.7% 65.3% Banca Akros 34.7% 65.3% Total 45.7% 54.3% System 42.7% 57.3%
134 Figures and ratios: Personnel
Average age and distribution by age bracket Average age Distribution by age bracket Total Women Men Younger than From 30 to From 50 to Over 60 30 years old 49 years old 59 years old years old Commercial banks, of which: 42.8 41.3 44.1 8.9% 65.2% 24.9% 1.0% Banca Popolare di Milano 43.4 41.8 44.7 7.8% 64.2% 26.9% 1.2% Banca di Legnano 40.0 38.0 43.0 15.7% 64.6% 19.2% 0.5% Cassa di Risparmio di Alessandria 41.5 41.0 42.0 9.8% 72.3% 17.5% 0.4% Banca di Mantova 34.9 32.2 37.2 32.1% 60.7% 7.1 % 0.0% Webank 38.0 38.0 38.0 8.5% 84.8% 6.7% 0.0% Affiliates with specialist skills, of which: 41.2 39.9 41.9 7.6% 76.2% 16.2% 0.0% Banca Akros 41.2 39.9 41.9 7.6% 76.2% 16.2% 0.0% Total 42.8 41.2 44.0 8.9% 65.6% 24.6% 1.0% System 42.8 40.6 44.5 11.6% 62.8% 24.5% 1.1%
Average period of service Total Women Men Commercial banks, of which: 16.5 15.6 17. 6 Banca Popolare di Milano 17. 6 16.9 18.3 Banca di Legnano 14.0 11 18 Cassa di Risparmio di Alessandria 11.9 11 13 Banca di Mantova 4.7 4.2 5.2 Webank 5.5 6 5 Affiliates with specialist skills, of which: 9.2 9.9 8.9 Banca Akros 9.2 9.9 8.9 Total 16.4 15.5 17. 2
Distribution of part-timers Total Women Men Commercial banks, of which: 1,079 96.4% 3.6% Banca Popolare di Milano 956 96.2% 3.8% Banca di Legnano 58 100.0% 0.0% Cassa di Risparmio di Alessandria 53 96.2% 3.8% Banca di Mantova 1 0.0% 100.0% Webank 11 100.0% 0.0% Affiliates with specialist skills, of which: 27 96.3% 3.7% Banca Akros 27 96.3% 3.7% Total 1,106 96.4% 3.6% System 93.4% 6.6%
135 Figures and ratios: Personnel
Turnover of new hires Total Women Men Temps Apprenticeship Children Specialists Other of former reasons employees Commercial banks, of which: 206 39.3% 60.7% 21.8% 19.9% 26.2% 22.8% 9.2% Banca Popolare di Milano 90 41.1% 58.9% 4.4% 21.1% 43.3% 28.9% 2.2% Banca di Legnano 34 35.3% 64.7% 35.3% 44.1% 11.8% 5.9% 2.9% Cassa di Risparmio di Alessandria 36 33.3% 66.7% 27.8% 13.9% 19.4% 38.9% 0.0% Banca di Mantova 16 50.0% 50.0% 0.0% 0.0% 0.0% 0.0% 100.0% Webank 30 40.0% 60.0% 63.3% 6.7% 13.3% 16.7% 0.0% Affiliates with specialist skills, 25 20.0% 80.0% 32.0% 0.0% 0.0% 0.0% 68.0% of which: Banca Akros 25 20.0% 80.0% 32.0% 0.0% 0.0% 0.0% 68.0% Total 231 37.2% 62.8% 22.9% 17.7% 23.4% 20.3% 15.6%
Turnover of departures Total Women Men Dismissals/ Retirements Solidarity Resignations Other Consensual Fund reasons resolution Commercial banks, of which: 417 26.4% 73.6% 1.0% 10.6% 78.7% 7.7% 2.2% Banca Popolare di Milano 332 25.0% 75.0% 1.2% 8.4% 80.7% 6.9% 2.7% Banca di Legnano 41 14.6% 85.4% 0.0% 2.4% 87.8% 9.8% 0.0% Cassa di Risparmio di Alessandria 41 48.8% 51.2% 0.0% 36.6% 58.5% 4.9% 0.0% Banca di Mantova 2 50.0% 50.0% 0.0% 0.0% 0.0% 100.0% 0.0% Webank 1 0.0% 100.0% 0.0% 0.0% 0.0% 100.0% 0.0% Affiliates with specialist skills, of which: 9 22.2% 77.8% 22.2% 22.2% 0.0% 55.6% 0.0% Banca Akros 9 22.2% 77.8% 22.2% 22.2% 0.0% 55.6% 0.0% Total 426 26.3% 73.7% 1.4% 10.8% 77.0% 8.7% 2.1%
Union activity Unionisation Total Strike hours Meeting rate hours Commercial banks, of which: 89.8% 12,953 11,738 1,215 Banca Popolare di Milano 90.5% 11,719 11,211 508 Banca di Legnano 88.1% 700 0 700 Cassa di Risparmio di Alessandria 92.0% 505 505 0 Banca di Mantova 91.1% 0 0 0 WeBank 64.2% 29 22 7
136 Figures and ratios: Personnel
Disciplinary measures Total Verbal Written Suspensions Dismissals/ warnings warnings Resignations Commercial banks, of which: 61 5 29 22 5 Banca Popolare di Milano 41 4 14 18 5 Banca di Legnano 14 0 14 0 0 Cassa di Risparmio di Alessandria 6 1 1 4 0 Banca di Mantova 0 0 0 0 0 WeBank 0 0 0 0 0
Promotions Total number as % of number of employees Total Women Men Total Women Men
Commercial banks, of which: 1,302 529 773 16.4% 14.5% 18.1% Banca Popolare di Milano 1,000 408 592 15.8% 13.8% 17.5% Banca di Legnano 161 55 106 19.9% 19.0% 20.4% Cassa di Risparmio di Alessandria 96 45 51 17.1% 14.8% 20.0% Banca di Mantova 0 0 0 0.0% 0.0% 0.0% WeBank 45 21 24 27.3% 26.9% 27.6% Affiliates with specialist skills, of which: 7 2 5 2.5% 2.1% 2.8% Banca Akros 7 2 5 2.5% 2.1% 2.8% Total 1,309 531 778 16.0% 14.2% 17.5%
137 Figures and ratios: Suppliers
NB (this applies to all of the tables): Common suppliers are shown under each bank
(Turnover in thousands of euro) Breakdown by type of supplies Total Services Property Technologies Number of Amount % suppliers % amount % suppliers % amount % suppliers % amount suppliers invoiced invoiced invoiced invoiced Commercial banks, of which: 2,680 318,132 70.9% 48.2% 15.6% 17.1% 13.5% 34.7% Banca Popolare di Milano 1,410 230,006 55.0% 33.9% 29.5% 23.2% 15.5% 42.9% Banca di Legnano 412 24,193 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% Cassa di Risparmio di Alessandria 389 22,347 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% Banca di Mantova 54 2,745 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% WeBank 415 38,841 64.8% 67.3% 0.5% 2.2% 34.7% 30.4%
Breakdown by amount invoiced Total Services Property Technologies Number of Amount % suppliers % amount % suppliers % amount % suppliers % amount suppliers invoiced invoiced invoiced invoiced Up to 100,000 euro 2,171 52,303 74.7% 65.6% 14.3% 18.7% 11.1% 15.7% From 100,001 to 500,000 euro 385 82,538 54.5% 53.6% 22.9% 22.5% 22.6% 24.0% From 500,001 to 1,000,000 euro 65 46,897 60.0% 60.4% 20.0% 20.4% 20.0% 19.2% Over 1,000,000 euro 59 136,394 49.2% 34.1% 11.9% 12.0% 39.0% 53.8% Total 2,680 318,132 70.9% 48.2% 15.6% 17.1% 13.5% 34.7%
Breakdown by type of supplies North-West Italy North-East Italy Central Italy Southern Italy Italian islands Abroad Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount of invoiced of invoiced of invoiced of invoiced of invoiced of invoiced suppliers suppliers suppliers suppliers suppliers suppliers Commercial banks, of which: 75.2% 77.7% 6.4% 7.5% 12.1% 10.4% 4.3% 1.5% 0.5% 0.6% 1.4% 2.3% Banca Popolare di Milano 64.3% 73.6% 8.1% 8.0% 16.9% 12.6% 7.7% 1.9% 0.4% 0.8% 2.6% 3.1% Banca di Legnano 92.0% 84.3% 1.9% 8.4% 5.6% 6.6% 0.2% 0.5% 0.2% 0.3% 0.0% 0.0% Cassa di Risparmio di Alessandria 87.7% 86.7% 4.4% 7.7% 8.0% 5.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Banca di Mantova 81.5% 73.5% 18.5% 26.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% WeBank 84.0% 93.9% 5.7% 2.6% 7.2% 3.1% 1.3% 0.4% 1.8% 0.0% 0.0% 0.0%
138 Figures and ratios: Suppliers
Breakdown by geographical area based on the number of suppliers North-West North-East Central Southern Italian islands Abroad Italy Italy Italy Italy Commercial banks, of which: 75.2% 6.4% 12.1% 4.3% 0.5% 1.4% Banca Popolare di Milano 64.3% 8.1% 16.9% 7.7% 0.4% 2.6% Banca di Legnano 92.0% 1.9% 5.6% 0.2% 0.2% 0.0% Cassa di Risparmio di Alessandria 87.7% 4.4% 8.0% 0.0% 0.0% 0.0% Banca di Mantova 81.5% 18.5% 0.0% 0.0% 0.0% 0.0% WeBank 84.0% 5.7% 7.2% 1.3% 1.8% 0.0%
Breakdown by geographical area based on the amount invoiced North-West North-East Central Southern Italian islands Abroad Italy Italy Italy Italy Commercial banks, of which: 77.7% 7.5% 10.4% 1.5% 0.6% 2.3% Banca Popolare di Milano 73.6% 8.0% 12.6% 1.9% 0.8% 3.1% Banca di Legnano 84.3% 8.4% 6.6% 0.5% 0.3% 0.0% Cassa di Risparmio di Alessandria 86.7% 7.7% 5.6% 0.0% 0.0% 0.0% Banca di Mantova 73.5% 26.5% 0.0% 0.0% 0.0% 0.0% WeBank 93.9% 2.6% 3.1% 0.4% 0.0% 0.0%
139 Figures and ratios: Community
(in thousands of Euro) Distribution by type of activity Total Donations Sponsorships and gifts Culture 4,291 356 3,934 Healthcare 536 512 24 Solidarity 937 522 415 Scientific research 107 66 41 Education 293 242 51 Sport 651 55 596 Other 262 198 63 Total 7, 076 1,952 5,124
(in thousands of Euro)
Total Donations Sponsorships and gifts Commercial banks, of which: 6,821 1,863 4,958 Banca Popolare di Milano 5, 714 1,451 4,263 Banca di Legnano 565 282 283 Cassa di Risparmio di Alessandria 338 124 214 Banca di Mantova 70 6 64 WeBank 134 0 134 Affiliates with specialist skills, of which: 255 89 166 Banca Akros 255 89 166 Total 7, 076 1,952 5,124
(in thousands of Euro)
Total Culture Solidarity Healthcare Scientific Education Sport Other research Commercial banks, of which: 6,821 4,246 900 549 86 293 559 188 Banca Popolare di Milano 5, 714 3,753 791 548 80 151 346 44 Banca di Legnano 565 226 24 0 0 89 130 96 Cassa di Risparmio di Alessandria 338 96 61 0 4 53 77 48 Banca di Mantova 70 62 2 1 3 1 2 0 WeBank 134 108 22 0 0 0 4 0 Affiliates with specialist skills, of which: 255 45 26 14 4 0 92 74 Banca Akros 255 45 26 14 4 0 92 74 Total 7, 076 4,291 926 563 90 293 651 262
140 Figures and ratios: Community
(in thousands of Euro) Geographical location of interventions Total Donations Sponsorships and gifts Milan 4,663 1,019 3,644 Province of Milan 509 195 314 Mantua and province 67 6 62 Rest of Lombardy 420 175 244 Alessandria 293 95 198 Rest of Piedmont 58 12 47 Lazio 438 103 335 Other Italian regions 419 230 189 Rest of the world 208 116 92 Total 7, 076 1,952 5,124
141 Figures and ratios: Environment
(kilograms) Paper consumption Total A4 paper A4 paper consumption consumption consumption per employee Commercial banks, of which: 1,979,639 541,866 68 Banca Popolare di Milano 1,612,813 428,350 68 Banca di Legnano 202,430 54,693 68 Cassa di Risparmio di Alessandria 139,314 47,323 85 Banca di Mantova 14,082 3,000 54 Webank 11,000 8,500 52 Affiliates with specialist skills, of which: 54,410 43,000 123 Banca Akros 30,845 26,000 94 ProFamily 23,565 17,000 236 Total 2,034,049 584,866 71
(kilograms) Waste collection and disposal Total waste Differentiated of which paper Total waste per waste (% of total employee waste)
Commercial banks, of which: 1,864,961 1,626,465 84.5% 240 Banca Popolare di Milano * 1,484,538 1,306,859 86.1% 234 Banca di Legnano 270,379 244,479 83.1% 334 Cassa di Risparmio di Alessandria 105,219 70,287 65.7% 188 Banca di Mantova 4,825 4,840 97.6% 86 Affiliates with specialist skills, of which: Banca Akros 5,750 4,750 78.3% 21 Total** 1,870,711 1,631,215 84.30% 233
* Figures including ProFamily and Webank ** The total does not include the figures of Ge.Se.So (around 6 tonnes)
142 Figures and ratios: Environment
Energy and water consumption Electricity Heat Water consumption in kWh Gas consumption in total consumption in cubic x sqm cubic metres x sqm metres x employee heated Commercial banks, of which: Banca Popolare di Milano * 138 11 50 Banca di Legnano 144 15 23 Cassa di Risparmio di Alessandria 128 27 52 Banca di Mantova 138 11 15 Affiliates with specialist skills, of which: Banca Akros 436 9 39 Total 139 13 46
* Figures including ProFamily and Webank
143 Glossary
ALERT: alarm, warning
ASSET MANAGEMENT: managing a portfolio of financial assets.
BANKING: activities carried out in a banking environment.
BIOMASS: materials of biological waste from farming, breeding and industry reused in special power stations to produce “clean” electricity.
BLOG AND MICROBLOG: web page (micro-page) created by a normal user, which is then continuously updated with information and commentary on issues of common interest.
BROKER DEALER: a firm that trades in securities and financial instruments (or, more broadly, in other assets) on behalf of clients.
BUSINESS UNIT: productive activity of a firm (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.
BOD: Board of Directors.
PRIVATE BANKING CENTRES: units dedicated to private banking customers.
CHAT: real-time conversations between computer users.
CLAIM: short phrase that became the slogan of the brand.
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.
WEB COMMUNITY: online community.
COMPENSATION OF CO2 EMISSIONS: elimination of CO2 emissions by voluntary purchasing of emission credits also generated through reforestation projects.
CONVENTION: a meeting of two or 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.
144 Glossary
CORE (BUSINESS): a company’s main activity, to which all of its production decisions are subject.
CORPORATE: a type of customer represented by medium-sized and large companies.
CORPORATE BANKING: banking activities addressed to medium and large size companies.
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.
COST TO INCOME RATIO: an indicator of productivity obtained by dividing operating expenses by operating income.
CREDIT RISK: risk that an unexpected change in the creditworthiness of the borrower, with which there is an exposure, generates a corresponding unexpected change in the value of the loan.
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.
DIVERSITY MANAGEMENT: corporate policies to develop and manage human resources through knowledge and appreciation of diversity (gender, age, nationality, etc.).
EQUITY (OR PRIVATE EQUITY): an activity that involves the acquisition of equity interests and their subsequent transfer to specific counterparties, without a public placement.
FAIR VALUE: International accounting standards (IAS) define 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”.
CLOSED-END FUND: a mutual fund with a fixed number of shares, in which the right to redeem units is only permitted at predetermined deadlines.
ETHICAL FUND: an investment fund that assigns its assets exclusively to companies whose policies are consistent with a social or environmental ethic.
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 finance Third Sector (charitable) activities by means of donations and contributions offered by private individuals and companies.
145 Glossary
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).
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.
GREEN CONSUMER: person whose buying behaviour, consumption and recycling is driven by awareness and environmental concern, as determined by their level of knowledge and their attitude toward such issues”.
HOLDING: a financial holding company that by owning the majority of various companies maintains control over their management.
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 dignified manner, in order to improve and consolidate their position in society.
INTERNAL AUDIT: independent checking and consultancy activities designed to improve organisational efficiency and effectiveness, via the assessment and development of processes involving controls, risk management and corporate governance.
INVESTMENT BANKING: a specialist area of finance 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.
KNOW-HOW: the knowledge and operational skills necessary to perform a specific job.
LEADERSHIP: interaction between the leader of a structure and the rest of the group.
LEASES: contract under which one party (the lessor) grants to another party (the lessee) for a specified period of time use of an asset, purchased or built by the lessor, on the choice and indication of the lessee, with an option for the latter to acquire ownership of the asset subject to fixed conditions on termination of the lease contract.
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 reflect 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 well-being, the quality of life and social integration.
M-SITE (OR MOBILE SITE): a website visible on a mobile phone
146 NON-PROFIT: activities carried on not with a view to making a profit.
NGO: Non-Governmental Organisation. Any local, national or international organisation or association of citizens, not created by the government and not part of any governmental structure, which is engaged in the field of social solidarity and cooperation for development.
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.
PERFORMANCE: equivalent to yield in financial terminology.
PERIURBAN: an area near the city that is not yet open countryside.
CEILING: expenditure ceiling.
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.
PRICE: quotation, price.
PRICING: the methods of determining the yields and/or costs of the products and services offered by the bank.
PRIVATE: these are generally individual customers with financial assets over a certain threshold.
PROJECT FINANCING: financial activities aimed in particular to the financing of projects on the basis of a forecast of cash flows generated by them, as well as - unlike ordinary credit risk analysis - technical analysis of the project sponsors’ ability to complete it and the existence of markets for the product.
RATING: the assessment made by a specialist private agency of the creditworthiness of a party that issues bonds in international financial markets, i.e. a reflection of the probability that the party will be able to service the debt on a timely basis.
147 Glossary
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 income to shareholders’ equity at the end of the period.
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.
SICAV (Società di Investimento a Capitale Variabile - Investment Company with Variable Capital): a company whose object is the collective investment of funds raised through a public offering of its shares. The capital must be fully paid in and the shares fully paid up on issue.
SIM (Società di Intermediazione Mobiliare): a company that only provides stockbroking services.
SMALL BUSINESSES: a market segment comprising small and medium-sized enterprises.
SOCIAL NETWORK: websites that make it possible to create a virtual social network, thereby facilitating the birth and maintenance of links with other people.
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: strictly speaking, all the individuals and identifiable groups on which the enterprise depends for its survival: shareholders, employees, customers, suppliers and key government agencies. More broadly, a stakeholder is any identifiable individual who can influence or be influenced by the organisation’s activity in terms of products, policies and processes: local groups, government bodies, business associations, competitors, unions and the press (R.E. Freeman, Strategic Management: a Stakeholder Approach, Pitman Boston,1984).
START UP: newly formed companies, where there are still organisational processes underway.
SUSTAINABLE DEVELOPMENT: a process designed to achieve objectives in terms of environmental, economic, social and institutional improvement, both locally and globally, with the aim of meeting the needs of present generations without compromising the ability of future generations to meet their own needs.
148 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-profit basis. In Italy, the Third Sector principally comprises voluntary organisations, social co-operatives, associations and foundations working for the benefit of society.
TIER 1 CAPITAL: the class of equity made up of the share capital and reserves coming from after-tax retained earnings.
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.
TRADING: buying and selling various kinds of securities that are traded on financial 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).
WEALTH MANAGEMENT: personalised management of major financial wealth.
WORKSHOP: study and investigation of a specific theme.
149