www.bancopopolare.it/en Consolidated Half-Yearly Report as at june 30th 2013 Consolidated half-yearly report as at 30 June 2013 Banco Popolare Società Cooperativa Registered office and General headquarters: Piazza Nogara, 2 - 37121 Verona Fully paid up share capital at 30 June 2013: 4,294,149,634.83 euro Tax Code, VAT No. and Verona Companies’ Register Enrolment No. 03700430238 Member of the Interbank Deposit Guarantee Fund and the National Guarantee Fund Parent Company of the Banco Popolare Banking Group Enrolled in the register of Banking Groups 2 OFFICERS, DIRECTORS AND INDEPENDENT AUDITORS AS AT 30 JUNE 2013 Board of Directors Chairman Carlo Fratta Pasini (*) Deputy Chairman Guido Castellotti (*) Deputy Chairman Maurizio Comoli (*) Managing Director Pier Francesco Saviotti (*) Directors Alberto Bauli Angelo Benelli Pietro Buzzi Aldo Civaschi Vittorio Coda Giovanni Francesco Curioni Domenico De Angelis (*) Maurizio Faroni (*) Gianni Filippa Andrea Guidi Valter Lazzari Maurizio Marino Enrico Perotti Gian Luca Rana Claudio Rangoni Machiavelli Fabio Ravanelli Sandro Veronesi Tommaso Zanini Cristina Zucchetti (*) members of the Executive Committee Board of Statutory Auditors Chairman Pietro Manzonetto Standing Auditors Giuliano Buffelli Maurizio Calderini Gabriele Camillo Erba Alfonso Sonato Alternate Auditors Marco Bronzato Carlo Sella General Management General Manager Maurizio Faroni Joint General Manager Domenico De Angelis Ethics and Disciplinary Committee Standing members Aldo Bulgarelli Luciano Codini Giuseppe Germani Alternate members Matteo Bonetti Donato Vestita Manager responsible for preparing the Company’s financial reports Gianpietro Val Independent Auditors Reconta Ernst & Young S.p.A. 3 4 CONTENTS Group structure .................................................................................................................................................................... 7 Group financial highlights .................................................................................................................................................. 10 Half-yearly report on operations ........................................................................................................................................ 13 Economic scenario ............................................................................................................................................................. 14 Significant events during the period .................................................................................................................................... 16 Risk management ............................................................................................................................................................... 22 Disclosure on structured credit products and on exposures to Special Purpose Entities ....................................................... 36 Disclosure on transactions with related parties ................................................................................................................... 36 Outlook for business operations ......................................................................................................................................... 37 Interim condensed consolidated financial statements ........................................................................................................ 39 Financial statements ........................................................................................................................................................... 40 Explanatory notes ............................................................................................................................................................... 46 Statement of compliance with international accounting standards ................................................................................... 46 General preparation principles ........................................................................................................................................ 46 Disclosure on transfers between portfolios of financial assets ........................................................................................... 51 Fair value disclosures ...................................................................................................................................................... 52 Scope of consolidation and methods ............................................................................................................................... 58 Results ............................................................................................................................................................................... 62 Key financial highlights of the main Group companies .................................................................................................... 91 Segment reporting ........................................................................................................................................................... 91 Disclosure on Banco Popolare shares .............................................................................................................................. 95 Disclosure on earnings per share ..................................................................................................................................... 96 Disclosure on share-based payment agreements ............................................................................................................. 96 Business combinations regarding companies or divisions ................................................................................................. 99 Transactions with related parties ..................................................................................................................................... 99 Significant events after the end of the interim period ..................................................................................................... 103 Certification of the interim condensed consolidated financial statements pursuant to art. 81-ter of Consob Regulation no. 11971 of 14 May 1999 and subsequent amendments and additions ........................................ 105 Independent Auditors’ Report .......................................................................................................................................... 109 Attachments .................................................................................................................................................................... 113 5 GROUP STRUCTURE: MAIN COMPANIES 77.% 62.6% 82.4% CREDITO BERGAMASCO BANCA ALETTI BANCA ITALEASE BP CROATIA 98.2% 20.9% 2.9% BP LUXEMBOURG 100% 16.5% 14.7% 80% 100% BP PROPERTY ALETTI GESTIELLE SGR RELEASE 100% MANAGEMENT 100% ITALEASE SOCIETÀ 100% GESTIONE BENI GESTIONE SERVIZI 32.8% ALBA LEASING BIPIELLE REAL ESTATE 100% TECKMARKET 100% HOLDING DI 100% PARTECIPAZIONI AGOS DUCATO 39.0% 24.4% POPOLARE VITA 25.6% 49.9% AVIPOP ASSICURAZIONI GROUP STRUCTURE: BUSINESS LINES INVESTMENT & PRIVATE BANKING, CORPORATE CENTRE NETWORK DIVISIONS ASSET MANAGEMENT LEASING AND OTHER BANCO POPOLARE BANCA ALETTI BANCA ITALEASE BANCO POPOLARE BPV division Group functions (North East) • Group Finance BPL division ALETTI GESTIELLE SGR RELEASE • Securities portfolio (North and Centre) • Institutional funding BPN division • Custodian bank (North West, Centre ASSOCIATED and South) COMPANIES FOREIGN BANKS • Alba Leasing CREDITO BERGAMASCO PRODUCT AND REAL ESTATE COMPANIES • Società Gestione Servizi • Bipielle Real Estate ASSOCIATED COMPANIES • Agos Ducato • Popolare Vita • Avipop Assicurazioni The BPV division works with the trademarks: Banca Popolare di Verona, Banco S. Geminiano e S. Prospero, Banco S. Marco, Banca Popolare del Trentino and Cassa di Risparmio di Imola. The BPL division works with the trademarks: Banca Popolare di Lodi, Cassa di Risparmio di Lucca Pisa e Livorno, Banco di Chiavari e della Riviera Ligure, Banca Popolare di Cremona and Banca Popolare di Crema. The BPN division works with the trademarks: Banca Popolare di Novara and Banco Popolare Siciliano. GROUP TERRITORIAL NETWORK Division General Management and Operational Headquarters Division Territorial Department Banco S.Geminiano e S.Prospero (Modena) Division Territorial Department Centre South (Rome) Division Territorial Department Cassa di Risparmio Geographical breakdown of Group branches di Lucca Pisa Livorno (Lucca) Banca Popolare di Verona Banca Popolare di Lodi Banco S.Geminiano e S.Prospero Cassa di Risparmio di Lucca Pisa Livorno Banco San Marco Banco di Chiavari e della Riviera Ligure Banca Popolare del Trentino Banca Popolare di Cremona Cassa di Risparmio di Imola Banca Popolare di Crema Banca Popolare di Novara Multi trademark areas Banco Popolare Siciliano Figures as at 30 June 2013 Credito Bergamasco Banco Popolare not present Banco Popolare Group Branches (*) Number Banco Popolare 1,650 Credito Bergamasco 239 Banca Aletti 35 Total 1,924 (*) Excluding 28 treasury branches Presence abroad Operations abroad are carried out by subsidiaries BP Luxembourg, BP Croatia, Banca Aletti Suisse and a branch of Banco Popolare in London. The Group’s presence on markets of interest for Italian exports takes the form of Representative Offices in China (Hong Kong and Shanghai) India (Mumbai) and Russia (Moscow). Overall, the Group has 37 branches located abroad. 9 GROUP FINANCIAL