GRUPPOGRUPPO CARIGECARIGE Programme and Covered Bond Issue Investor Presentation Obbligazioni Bancarie Garantite August 2010 GRUPPO CARIGE 1 Executive Summary Ratings: A2/P1 Moody’s, A/F1 Fitch, A-/A2 S&P Among the top 10 Italian banking Groups Banca Carige Adequate capital ratios Excellent / long standing mortgage origination and servicing history No direct exposure to subprime market and monoline Low level of indebtedness by households Italian Mortgage High home ownership of the Italian households Market Property values’ volatility much lower than in other European countries Low delinquencies compared to other European countries Italian legislative covered bond: Obbligazioni Bancarie Garantite (“OBG”) OBG Triple A expected rating (Moody’s, Fitch Ratings) Programme Benefits from 26% currently committed over-collateralisation 95.07% Italian prime residential mortgages, 4.93% Italian commercial mortgages all originated by Gruppo Carige Eligible mortgage loans, as per Italian OBG law Collateral All loans are performing Characteristics High concentration in the north of Italy (80%) Highly seasoned portfolio (38 Months Weighted average seasoning) WA LTV: 50.88% (Residential) and 24.64% (Commercial) GRUPPO CARIGE 2 Solid ratings Short term credit rating: P-1 Short term credit rating: F1 Short term credit rating: A2 Long term credit rating: A2 Long term credit rating: A Long term credit rating: A- Outlook: Stable Outlook: Stable Outlook: Negative Credit opinion 23 November 2009 Report 24 May 2010 Report 4 May 2010 Ratings of Banca Carige SpA reflect the The ratings of Banca Carige are based on The ratings on Banca Carige SpA reflect bank's strong franchise in the north- its expansion through organic growth the bank's strong franchise in its home western Italian region of Liguria, its and the acquisition of branches, which Region of Liguria in northwestern Italy, satisfactory financial fundamentals as has helped to underpin operating good liquidity, and good efficiency, well as ongoing integration challenges. revenue generation; on a good franchise underpinned by cost synergies with in its home region; on sound liquidity; integrated entities. Despite stronger competition from larger and on adequate capitalisation, which Offsetting factors include high single- banking groups that have entered the has benefited from regular capital name and sector loan concentration, region in recent years, we believe that increases to finance the bank’s growth. capitalization that is being weighed down Carige should be able to defend its The ratings also reflect risks linked to by capital intensive insurance franchise thanks to a wide product range fast expansion, including integration risk operations, and high sensitivity of and a multi-channel distribution and the potential for deterioration of revenues to low interest rate levels. approach. asset quality. Source: rating agencies’ report GRUPPO CARIGE 3 Table of Contents Issuer description Italian mortgage market Gruppo Carige’s mortgage business Banca Carige OBG Programme Cover Pool Description Annexe : Italian OBG Law vs. European Covered Bond Framework GRUPPO CARIGE 4 Banca Carige Group today ~50,000 small shareholders Fondazione CR CEP Assicurazioni Genova e Groupe BPCE Market Generali Imperia 44.06% * 14.98% * 2.97% * 37.99% * Banca Carige SpA Cassa di Risparmio di Genova e Imperia Banking Insurance Finance Trustee • Banca Carige • Carige Vita Nuova (life) •CarigeAM SGR •Centro Fiduciario •CR Savona • Carige Ass.ni (non life) • Creditis (Consumer •CR Carrara credit) •BM Lucca •B. CesarePonti Main Companies Only 667 (**) BRANCHES & 6,038 1.9 M CUSTOMERS EQUITY EMPLOYEES 427 INSURANCE OUTLETS 3.5 € BILLION (1.2 M BANKING; 0,7M ASSURANCE) 859 CONSULTANTS *Holding calculated on the basis of ordinary shares ** Including 2 branches opened in July Operational and accounting data as at 30 June 2010 GRUPPO CARIGE 5 Among the top Italian banking Groups Market Cap(1) (€bn) Net Customer Loans FY09 (€bn) 38.6 565 30.1 • Ordinary shares 2.7 €b #5 374 • Savings shares 0.5 €b #8 152 5.4 5.0 3.2 3.0 2.2 2.0 98 95 1.6 1.5 0.9 45 33 23 20 18 18 (1) Data as at 12 August 2010 Domestic Branch Network FY09 (#) Cost to Income Ratio (%) FY09 9,799 #4 7,884 #8 69.1% 69.8% 70.7% 64.2% 66.5% 66.8% 55.6% 55.7% 56.9% 58.1% 42.9% 3,129 2,292 1,966 1,286 795 667 575 515 278 Including 22 ex MPS branches and 2 branches opened in July Source: Companies data GRUPPO CARIGE 6 Sound capital ratios Capital Ratios 12.00% 10.03% 10.00% 9.09% 1H10 including the full conversion of T1R min 7.87% the convertible 8.00% 6.82% bonds at current T1R recommended share price T1R Carige Group 6.00% 7.06% TCR 10.4% TCR min 6.04% T1R 8.1% TCR recommended 4.00% CT1R 7.3% TCR Carige Group CT1R Carige Group 2.00% 2005 2006 2007 2008 2009 June 2010 (*) (*) Operational data Core Tier 1 Ratio (%) FY09 Total Capital and Tier 1 Ratio (%) FY09 #7 CT1R #10 TCR #7 T1R 8.1% 8.0% 7.6% 7.4% 7.4% 7.1% 7.1% 7.0% 12.1% 12.8% 6.6% 6.2% 12.0% 11.8% 11.0% 11.9% 10.8% 11.9% 10.8% 10.0% 9.3% 12.6% 8.7% 8.6% 8.4% 8.1% 8.0% 7.9% 7.7% 7.5% 7.2% 6.6% CT1R T1R Residual TCR Source: Companies data GRUPPO CARIGE 7 Customer based funding and no pressure on liquidity Funding Direct deposits by segment – 1H10 1H10 Other Affluent €m% 26.1% & Mass Interbank deposits 2,369.2 8.3 Market money market deposits and current accounts 1,997.6 7.0 48.0% other deposits 371.6 1.3 Private Customer deposits 23,166.2 80.8 12.7% short term deposits 15,975.2 55.7 Change medium/long term deposits 1H10/1H09 25.1 +12.9% and bonds 7,191.0 Corporate Total 26.3 €b EMTN programme 938.0 3.3 13.2% deposits 50.0 0.2 Mass Market: total deposits < 80 k€, Affluent > 80 k€, Private > 500 k€ bonds 888.0 3.1 Subordinated loans 923.8 3.2 Current Debt Maturity Profile (€m) floating rate bonds 913.9 3.2 convertible fixed rate bonds 9.9 0.0 500 €m Securitisation 271.5 0.9 callable in RMBS performing securities 271.5 0.9 2011 Covered Bonds 1,000.0 3.5 100 €m 2,071 TOTAL FUNDING 28,668.7 100.0 callable in COVERED BONDS 1,647 2013 1,554 INSTITUTIONAL Funding includes further: 1,209 1,122 1,137 CUSTOMERS -€85.4 million from the securitization Argo 1,041 Mortgage carried out in 2001, derecognised * in the financial statement pursuant to the 394 310 216 226 exemption allowed by IFRS 1 on first time 5 adoption - €500 million of covered bonds eligible for 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2023 EBC RePo * Held by Banca Carige Source: Operational and accounting data (1H10 report) GRUPPO CARIGE 8 Diversified loan book... by segment by area (*) Private & Affluent South & Public Other Mass Isles Entities 2.4% Centre 10.6% Market 6.0% Liguria 4.1% 27.3% ¾of loans 20.6% to 37.8% retail Large Small Corporate Business customers 8.8% 9.8% SME North 37.0% 35.6% (*) by customers’ residence by maturity by sector Other Sales‐related 26.1% services 33.5% NPL mortgage loans to 4% individuals 38% Shipping and public entities air transport 3% 3.2% m/l term Hotel and 73% consumer credit catering 4% services Building and short term Wholesale & 5.1% public works 23% loans to corporate retail trade, 16.9% 55% salvage and repairs 15.2% Non-financial businesses and personal businesses (total 14.9 €b) by sector LOANS TO CUSTOMERS 1H10 : 24.3 €bn Small business = turnover< 1 m€; SMEs= <100 m€; Large Corporate= >100 m€ Mass Market: total deposits < 80 k€, Affluent > 80 k€, Private > 500 k€ Source: Operational and accounting data (1H10 report ) GRUPPO CARIGE 9 with sound credit quality Breakdown of impaired loans (€m) Impaired loans 1Q10 Comparison wih the System (€m) 1H10 Gross Adj. Net Coverage Performing loans 22,182 73 22,109 0.3% Carige Group Impaired loans 2,094 533 1,560 25.5% (Mar10 ‐ Impaired loans 2.1€b) 924 991 NPL (Sofferenze) 991 460 531 46.4% 854 Watchlist (Incagli) 499 62 436 12.5% 444 474 442 498 499 474 Rescheduled (Ristrutturati) 130 4 127 2.7% 132 130 130 Past due (Scaduti) 474 8 466 1.7% Total loans to customers 24,276 606 23,669 2.5% Dec 09 Mar 10 June 10 System (Mar10 ‐ Impaired loans 138.8€b) 1H10 FY09 60,242 64,798 NPL 49,141 51,307 Cost of risk 0.2% 0.4% Watchlist 15,759 13,449 Rescheduled Impaired loan ratio 7,697 9,234 Past due 8.2% 8.6% Dec 09 Mar 10 Source: Bank of Italy 6.9% 6.2% 6.0% Gross Carige Change 6.6% 6.3% Dec09/08 Mar10/Dec09 June10/Dec09 5.1% Net 4.1% 4.6% NPL 37.3% 8.2% 16.1% Watchlist 8.7% ‐0.5% 12.3% Dec 07 Dec 08 June 09 Dec 09 June 10 Rescheduled 2442.3% ‐1.7% ‐1.3% Past due 95.7% 4.9% ‐0.1% NPL ratio Impaired loans 49.0% 4.7% 9.9% 4.1% 3.6% 3.6% 3.3% 2.9% System Change Dec09/08 Mar10/Dec09 Gross NPL 40.8% 7.6% 2.0% 2.2% Net Watchlist 47.6% 4.4% 1.6% 1.7% 1.4% Rescheduled 351.4% 20.0% Dec 07 Dec 08 June 09 Dec 09 June 10 Past due 69.6% ‐14.7% Impaired loans 52.6% 4.5% Operational and accounting data (FY07 report – FY08 report - 1H09 report – FY09 report – 1H10 report) GRUPPO CARIGE 10 A diversified network The network today new ex ISP ex Unicredit ex MPS branches branches branches branches 5 8 667 2 1/1 73/69 46/ 37 56/25 643 22 28/ 22 40 France 254/ 15 79 79/21 5/12 1 2/9 522 2 137 17 39/40 32 9/33 1989 2007 2009 TODAY 5 3 11/24 100% 72% 71% 69% 26 96% 48% 39% 38% 63/52 Banking branches 667 % of Branches % of Insurance outlets 427 in Branches Northern Italy in Liguria GRUPPO CARIGE 11 Stable net profit Net profit (€m) ROE FY09 2007 2008 2009 Change % 08/07 09/08 09/07 12.6% BPS 147 44 201 ‐70.4% 361.1% 36.5% CARIPARMA 295 297 311 0.7% 5.4% 5.4% 8.4% 7,2% ROE Adjusted* CARIGE 205 206 205 0.3% ‐0.1% 0.3% 5,7% BPVI 114 109 101 ‐4.4% ‐7.1% ‐11.2% 5.6% CREVAL 86 101