BANCABANCA CARIGECARIGE Cassa di Risparmio di Genova e Imperia UniCredit European Regional Investors Conference Munich, 24 May 2007 -1- BANCA CARIGE Agenda Carige Group Overview Strategic Plan 2006-2008 2006 & 1Q07 Results Carige on Capital Markets Investors Conference Investors Annexes UniCredit Regional European -2- BANCA CARIGE A strategic location The new Trans-European Corridors: an opportunity for Carige • From a geografic point of view Genoa and Liguria Region are in a Banca Carige strategic position headquarters (Genoa, Liguria) •The market share of Carige in Liguria is about 30% -3- BANCA CARIGE Banca Carige Group today ~52.000 small shareholders Fondazione CR Assicurazioni Genova e CNCE WestLB Generali Market Imperia 41.15% 14.56% 5.05% 2.10% 37.14% Banca Carige SpA Cassa di Risparmio di Genova e Imperia Banking Insurance Finance Trustee Real Estate • Banca Carige • Carige Vita Nuova (life) • Carige AM SGR •Cr Savona • Carige Ass.ni (non life) • Creditis (consumer credit) • Cr Carrara • BM Lucca •B. CesarePonti Main Companies only -4- BANCA CARIGE A medium-sized Group MARKET CAP €b, data at 17.05.07 CARIGE MARKET CAP RATING • Ordinary shares 4.6 €b • Fitch A 99,4 • Saving shares 0.7 €b • Moody’s A2 • S&P’s A- 77,3 17,5 14,3 12,7 10,2 5,3 3,4 1,4 e m MPS Banca Carige Creval Crede aolo+CrFi it+Capitalia Ubi P BPM+BPER Banco Popolar Unicred IntesaSan Banco Popolare= BPVN+BPI ; UBI Banca: BPU+B.Lombarda -5- BANCA CARIGE A long term steady growth... Annual average yield per ordinary share since IPO 2003 Capital increase 2006 Capital increase (€ 215M) Capital gain (a) 12.4% and acq.of CR Carrara Dividend Yield (b) 3.6% 2004 Carige AM SGR and acq.of Banca Ponti Total Return (a+b) 16.0% Price at 15.05.07 (3.81 €) Price Vol. € #m 2000-02 124 branches from BdS. Intesa and Capitalia 4.0 1997 Acq. of Insurance Companies 1483 Monte di Pietà di Genova 1998 Capital increase underwritten by 15 institutional investors 1846 Cassa Risparmio Genova 3.0 1999 partnership agreements 1929 Merger Monte + CR (CNCE. WestLB and El Monte) Genova and acq. of BML and CR Savona 10 1991 Banca Carige Spa - Foundation 2.0 5 1.0 1483 1846 1929 1991 1995 2007 IPO -6- BANCA CARIGE ... through a long season of acquisitions Year CAPITAL COLLECTED €m Year ACQUISITIONS €m 1994-95 IPO 105 1993 - 99 Cassa di Risparmio di Savona 227 1996-97 Bond conversion into new shares 61 1991-06 Insurance companies 317 1997 Capital increase underwritten 46 1999-02-06 Banca del Monte di Lucca 70 by La Basilese 2000 21 branches from Banco di Sicilia 60 Capital increase underwritten 1998 by institutional investors 116 2001 61 branches from Intesa 277 Capital increase underwritten 1999 by CNCEP. CDC. WestLB 236 2002 42 branches from Capitalia 127 2001 Issue of a subordinated loan 400 2003 Cassa di Risparmio di Carrara 174 Capital increases and issue of 2003-06 subordinated convertible bonds 521 2004-06 Banca Cesare Ponti 50 Total 1.485 Total 1.302 More than 85% of capital collected already invested in acquisition -7- BANCA CARIGE A franchise with its heart in Liguria 1989 2006 131 (96%) 250 (49%) branches branches 4 7 in Liguria; in Liguria for a 1 1 94 (69%) in the 43/60 12/30 30% market 39/24 3 area of Genoa South share 2 20/18 France 131 1 250/15 56/24 4/11 1/5 13 33/35 2 9/34 7 3 7/24 25 37/53 Banking branches Insurance outlets Branches/ Branches Employees Regions outlets Employees Regions Bank 137 2.962 4 Banks 512 4.671 12/20 Insurances 395 361 20/20 Group 907 5.032 20/20 -8- BANCA CARIGE Long term growth of volumes and results LENDING AND DEPOSITS NET PROFIT (€b) (€m) 52.4 138 6x 7X 8.4 20 1989 2006 1989 2006 SHAREHOLDERS’ EQUITY (1) EMPLOYEES (€b) (#) 1.7 5.029 9x 2.962 1.7x 0.2 1989 2006 1989 2006 (1) Bank of Italy participation not included (656 €m) -9- BANCA CARIGE Focus on retail by segment by area L Large Corporate Small Business South + Isles 11% O 8% 4% Individuals Centre Other 8% A 31% 16% Public N Entities 6% North Liguria S SMEs36% 29% 51% LOANS TO CUSTOMERS AT 31.12.2006: 16.1€b D by segment by area E Other Private Centre South + Isles 6% P 13% 15% 18% O North S Corporate 12% 24% I Liguria T Affluent & Mass 48% 64% S TOTAL DEPOSITS AT 31.12.2006: 35.8 €b CORPORATE: Small business = turnover<1m ; SMEs= <100m€; Large Corporate= >100m€ INDIVIDUALS: Retail or Mass Market= deposits<50k€; Affluent >50k€; Private= >250k€ outside Liguria, >350k€ Liguria -10- BANCA CARIGE Agenda Carige Group Overview Strategic Plan 2006-2008 2006 & 1Q07 Results Carige on Capital Markets Investors Conference Investors Annexes UniCredit Regional European -11- BANCA CARIGE Our strategy Independence through growth 1990 - 1998 1999 - 2004 2005 - 2008 Capital base Expansion and Rationalization strengthening and diversification opening to new and shareholders profitability enhancement -12- BANCA CARIGE Our mission A national financial conglomerate equipped to provide banking. financial. insurance and pension solutions establishing strong ties with local markets, able to differentiate in the quality of service through an integrated multi-channel distribution system and the quality of resources and structures Quality of Conglomerate National Multi-channel resources and structures • Complete offer of • Stronghold in • Distribution • Specialization of banking. financial and Liguria system based on distribution and insurance products • Out of Liguria it branches. production structures and services mobile and distinguishes itself • Unitary management of remote channel • Aggregation point for for the attention to the Group’s key- smaller banks the relationship • Focus on retail expertises with local • Widespread and • Professional development communities intensive use of of human resources technology -13- BANCA CARIGE The Strategic Plan 2006-2008 CORE PRIORITIES 2008 TARGET • Profitability enhancement of 20052005 2008e2008e CHANGECHANGE 08/05 08/05 Strengthening subsidiaries (banks and of operating insurances) and of each business area (lending, 220 Cagr +18.9% efficiency and wealth management, profitability NET payment system) PROFIT 131 enhancement €m • Cost Management • Increase of volumes per employee: Growth ¾ cross-selling, up-selling and VOLUMES 47 57 Cagr +6.7% , +10€b €b through retention in Liguria productivity ¾ rising of market share outside Liguria, also in synergy with COST 66.4 improvement INCOME 54.7 -11.7pp insurance agents % • Re-engineering of business processes ROE adj. 6.2 8.2 % . (*) +2.0pp Risk • Control of the economic impact of all kind of risks TIER I 5.4 8.2 +2.8pp management % (*) Equity net of revaluation of the participation in Bank of Italy -14- BANCA CARIGE The Strategic Projects PRODUCTION DISTRIBUTION SUPPORT JV-CONSUMER CREDIT LIGURIA PROJECT NEW FRONT OFFICE (CUSTOMER SEGMENTATION) COMMERCIAL PFP STRENGTHENING REVENUES PROGRAM SIDE COLLABORATION BRANCHES-INSURANCE AGENTS NEW BRANCHES PLAN MICROCHIP REMOTE BANKING (ATM) COST MANAGEMENT COST SIDE BACK OFFICE CENTRALISATION RISK BASEL II SIDE Details in annexes About 60 €m of investments in 2007… €m €m 2121€m for NEW BRANCHES 3939€m for INNOVATION & IT -15- BANCA CARIGE Agenda Carige Group Overview Strategic Plan 2006-2008 2006 & 1Q07 Results Carige on Capital Markets Investors Conference Investors UniCredit Regional European Annexes -16- BANCA CARIGE 2006 Results CARIGE GROUP 2005 2006 2008 VAR.VAR. CAGRCAGR CARIGE GROUP 2005 2006 2008 06-0506-05 08E-0508E-05 Total Deposits (€b) 33.6 35.8 39.96.6% 5.9% Loans to customers (€b) 14.0 16.1 17.014.7% 6.6% (*) (*) 160 +22% Net Profit (€m) 131 138 220 4.9% 18.9% Shareholders’ Equity (€b) 2.1 2.6 2.7 19.5% 7.9% Cost Income 66.4% 56.6% 54.7% -9.8 pp -11.7 pp ROE 6.2% 5.4% 8.2% -0.8 pp +2.0 pp ROE adj (**) 8.3% 7.1% 10.3% -1.2 pp +2.0 pp Tier 1 5.4% 8.4% 8.2% +3.0 pp +2.8 pp Total capital ratio 8.4% 10.7% 11.8% +2.3 pp +3.4 pp (*) Carige Assicurazioni extraordinary gross provisions to reserves: 48€m (**) Equity net of revaluation of the participation in Bank of Italy -17- BANCA CARIGE 2006 Results 2006 key-points: • Cost Income reduced by 10 points • Good performance in revenues • Costs under control NET INTEREST INCOME REVENUES €m (*) 1.011 558 604 COST INCOME +17.4% % 874 475 CAGR +12.3% CAGR 8.3% 779 9.1% 66.4 2005 2006 2008e BP 56.6 54.7 2005 2006 2008e OTHER REVENUES BP 407 2005 2006 2008e OPERATING COSTS 316 304 CAGR BP €m +3.9% 10.2% 560 2005 2006 2008e 524 503 BP -4.2% CAGR 2.2% (*) Cost Income: provisions to reserves for risks and charges not included 2005 2006 2008e BP -18- BANCA CARIGE COST INCOME______________ 2005, % 66.9 66.4 CARIGE VS COMPETITORS 66.0 66.0 BPM 64.7 Carige 62.6 MPS 61.7 Av. 62.8% Banco Popolare= BPVN+BPI ; UBI Banca: BPU+B.Lombarda 61.1 (1) Carige Cost Income : provisionsCRFir to reservesenze for risks and charges not included \ COST INCOME______________ Credem 59.1 2006, % BANCA CARIGE Banco Popolare 53.7 Unicredit Capitalia 2006 Results 60.9 UBI Banca 60.6 60.5 IntesaSanPaolo 58.4 MPS 56.6 56.5 56.4 56.2 BPM Av. 57.3% Credem Capitalia Carige 53.7 Unicredit 52.7 CRFirenze UBI Banca Banco Popolare IntesaSanPaolo KBW - 12.04.07 report -19- 2006 Results High performance of loans to customers, already higher than 2008 targets and driven by mortgages (both to families and to SMEs); Carige outperformed: +14.7% vs 11.9% av.