BB THE BANCA CARIGE GROUP Fondazione CR CE Participations Generali Other Genova e Groupe BPCE Assicurazioni shareholders Imperia 44.06% 14.98% 2.97% 37.99% BANCA CARIGE S.p.A. - Cassa di Risparmio di Genova e Imperia 90.00% Banca Cesare Ponti S.p.A. 90.00% Cassa di Risparmio di Carrara S.p.A. Carige Vita Nuova S.p.A. 100.00% 60.00% Banca del Monte di Lucca S.p.A. Carige Assicurazioni S.p.A. 98.40% 1.16% held through own shares. 95.90% Cassa di Risparmio di Savona S.p.A. 20.00 % 76.95% Centro Fiduciario C.F. S.p.A. Dafne Immobiliare S.r.l. 100.00% 100.00% Columbus Carige Immobiliare S.p.A. 100.00% I.H. Roma S.r.l. Immobiliare Carisa S.r.l. 100.00% 57.50% Assi90 S.r.l. 37.50% 100.00% Creditis Servizi Finanziari S.p.A. 0.50% 99.50% Carige Asset Management SGR S.p.A. 100.00% Argo Finance One S.r.l. 100.00% Priamar Finance S.r.l. 60.00% Argo Mortgage S.r.l. 60.00% Argo Mortgage 2 S.r.l. 60.00% Carige Covered Bond S.r.l. Banca Carige Group Banking activities Trustee activities Insurance activities Instrumental activities Financial activities 2 BANCA CARIGE GROUP INTERIM REPORT ON OPERATIONS AS AT 31/3/2010 CONTENTS CONSOLIDATED FINANCIAL HIGHLIGHTS 4 MANAGEMENT OF THE PARENT BANK 5 INTERIM REPORT ON OPERATIONS 6 - The real and monetary situation 7 - Strategy 8 - Business performance 9 - Significant events of the first three months 2010 9 - Risk management 10 - Significant events occurred after 31 March 2010 and outlook for the current year 10 - Transactions with related parties 11 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 12 Consolidated financial statements 13 - Consolidated balance sheet 14 - Consolidated income statement 15 - Statement of consolidated comprehensive income 16 - Statement of changes in consolidated shareholders’ equity 17 - Consolidated cash flow statement 20 Explanatory notes 21 - Accounting policies 21 - Area and methods of consolidation 23 - Intermediation activities 26 - Economic results 43 - Insurance activities 48 - Transactions with related parties 49 - Equity investments 50 - Own shares, cash flow statement and shareholders’ equity 50 - Resource management 51 - Risk management 53 - Segment reporting 59 - The Parent Bank: financial statements and explanatory notes 65 - Bank subsidiaries 91 - Insurance subsidiaries 96 - Financial subsidiaries 98 - The other main subsidiaries 101 DECLARATION OF THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S 102 FINANCIAL REPORTS PURSUANT TO PARAGRAPH 2 OF ART. 154-bis OF THE CONSOLIDATED LAW ON FINANCE REMARKS The following signs are used by convention in the tables: - when data are nought … when data are not significant 3 CONSOLIDATED FINANCIAL HIGHLIGHTS Situation as at Change % 31/3/2010 31/12/2009 31/3/2009 3/10 3/10 12/09 3/09 BALANCE SHEET (1) Total assets 37,288,763 36,299,374 32,093,305 2.7 16.2 Funding 26,756,889 26,355,057 23,027,062 1.5 16.2 - Direct Deposits (a) 25,477,435 25,695,779 22,445,605 -0.8 13.5 * Amounts owed to customers 14,860,166 15,061,675 12,194,461 -1.3 21.9 * Securities in issue 9,929,162 10,019,877 9,667,633 -0.9 2.7 * Liabilities at fair value (2) 688,107 614,227 583,511 12.0 17.9 - Amounts owed to banks 1,279,454 659,278 581,457 94.1 … Indirect deposits (b) 21,078,266 21,225,626 21,095,397 -0.7 -0.1 - Assets under management (3) 9,180,272 8,701,235 7,743,235 5.5 18.6 - Assets in custody (3) 11,897,994 12,524,391 13,352,163 -5.0 -10.9 Financial Intermediation Activities (FIA) (a+b) 46,555,701 46,921,405 43,541,002 -0.8 6.9 Investments 33,367,968 32,387,413 27,899,432 3.0 19.6 - Loans to customers (4) 22,865,826 23,116,726 20,751,444 -1.1 10.2 - Loans to banks (4) 2,375,612 1,074,538 1,366,958 … 73.8 - Securities portfolio 8,126,530 8,196,149 5,781,030 -0.8 40.6 Capital and reserves 3,805,395 3,605,708 3,472,271 5.5 9.6 Situation as at Change % 31/3/2010 31/12/2009 31/3/2009 3/10 3/10 12/09 3/09 INCOME STATEMENT (1) Gross operating income 252,941 1,119,487 266,319 -5.0 Net income from financial and insurance management 213,012 942,611 231,077 -7.8 Operating income from ordinary activities before taxes 56,419 313,113 74,961 -24.7 Profit for the period 32,093 205,381 45,123 -28.9 RESOURCES (5) Number of branches 643 643 643 - - Insurance agencies 414 394 380 5.1 8.9 Number of bank employees 5,443 5,500 5,492 -1.0 -0.9 Number of bank and insurance employees 5,895 5,906 5,880 -0.2 0.3 FINANCIAL RATIOS Operating costs Gross operating income 61.91% 56.88% 58.61% Operating profit from ordinary activities before taxes /Capital and reserves 1.48% 8.68% 2.16% ROE 0.84% 5.70% 1.30% ROE (6) 1.05% 7.17% 1.60% ROAE (7) 0.88% 5.92% 1.33% ROAE (6) (7) 1.09% 7.40% 3.20% Earnings per share (in euro) - base 0.014 0.113 0.023 - diluted 0.014 0.113 0.022 RISK ASSETS AND REGULATORY RATIOS (8) Total Risk-Weighted Assets (1) 20,037,588 19,812,888 19,316,375 1.1 3.7 Core Tier 1/Total Risk-Weighted Assets 6.98% 7.06% 6.80% Tier 1 capital / RWA 7.78% 7.87% 7.63% Regulatory capital including Tier 3 capital/Total weighted assets 9.96% 10.03% 9.80% (1) Figures in thousands of euro (2) Carige Vita Nuova liabilities, designated at fair value and relating to products for which investment risk is borne by the insured, are not included in this table. (3) Financial investment processes related to part of the securities portfolio of the Group insurance companies have been reviewed during the year . In compliance with this review the investment management agreements signed between the Parent Bank and the insurance subsidiaries have been cancelled and replaced by an advisory agreement, appointed to Carige AM SGR. In light of this, amounts pertaining to the insurance companies have been reclassified from assets under management to assets in custody. The aggregates for the previous periods have been adequately reclassified to allow a homogeneous comparison as at 31/12/2009. (4) Gross of value adjustments and net of debt securities classified as L&R. (5) Statistics of the end of period. (6) Net of the AFS reserve established against the revaluation of the equity investment in the Bank of Italy. (7) Net profit on average shareholders' equity (Return On Average Equity). (8) Figures as at 31/3/2010 and 31/3/2009 result from accounting and management estimates, as the official consolidated figures (Information form "1") are provided only every six months (in June and December). 4 MANAGEMENT OF THE PARENT BANK BOARD OF GENERAL MANAGEMENT BOARD OF STATUTORY DIRECTORS AUDITORS CHAIRMAN GENERAL MANAGER CHAIRMAN Giovanni Berneschi* Alfredo Sanguinetto Andrea Traverso DEPUTY CHAIRMAN DEPUTY GENERAL STANDING AUDITORS Alessandro Scajola * MANAGER Massimo Scotton (COMMERCIAL) Antonio Semeria DIRECTORS Carlo Arzani (1) Piergiorgio Alberti * SUBSTITUTE AUDITORS Piero Guido Alpa DEPUTY GENERAL Adriano Lunardi Luca Bonsignore MANAGER Luigi Sardano Cesare Castelbarco Albani (ADMINISTRATION AND Remo Angelo Checconi * RESOURCES) AUDIT FIRM Bruno Cordazzo Giacomo Ottonello Deloitte & Touche SpA Bruno Deletré Gabriele Galateri di Genola DEPUTY GENERAL Luigi Gastaldi * MANAGER Pietro Isnardi (CREDIT AND WEALTH Paul Marie Le Bihan MANAGEMENT) Alain Jean Pierre Lemaire Mario Cavanna Paolo Cesare Odone * Renata Oliveri * DEPUTY GENERAL Guido Pescione MANAGER Mario Venturino (GOVERNANCE AND CONTROL) Ennio La Monica *Member of the Executive Committee The Board of Directors was appointed by the Ordinary Shareholders’ Meeting of 29 April 2009 for the financial years 2009-2010-2011. The Ordinary Shareholders’ Meeting of 29 April 2010 appointed Mr. Bruno Deletré and Mr. Paul Marie Le Bihan – already co-opted by the Board of Directors on 14 December 2006 and 22 February 2010 to replace the outgoing Mr. Jean-Marie Paintendre and Mr. Jean-Jacques Bonnaud – as members of the Board of Directors of CARIGE S.p.A., with the same expiry of term in office as the other Board members. The Executive Committee was appointed by the Board of Directors on 11 May 2009 with term of office up to 31 October 2010. On 21 December 2009, the Board of Directors appointed Deputy General Manager for Governance and Control, Mr. Ennio La Monica, as the General Manager starting from 1 May 2010 and, at the same time, resolved to extend the term of office of Mr. Alfredo Sanguinetto until his replacement takes office. The Board of Statutory Auditors was appointed by the Ordinary Shareholders’ Meeting of 29 April 2008 for the financial years 2008-2009- 2010. The mandate to the Audit Firm was granted by the Ordinary Shareholders’ Meeting of 20 April 2006 for the financial years 2006-2007-2008- 2009-2010-2011. On 11 May 2009, in compliance with the provisions of art. 154 bis, paragraph 1 of Legislative Decree 58/1998 and art. 31 of the Articles of Association, the Board of Directors resolved the appointment, effective from 12 May 2009, of Daria Bagnasco, Planning and Accounting Head Office Manager of Banca Carige S.p.A., as the Manager responsible for preparing the company’s financial reports, having verified the requirements of integrity and experience.